{"data":{"id":"us-ky/krs-362.1-703","jurisdiction":"us-ky","citation":"KRS 362.1-703","heading":"Dissociated partner's liability to other persons.","body":"(1) A partner's dissociation does not of itself discharge the partner's liability for a\npartnership obligation incurred before dissociation. A dissociated partner is not\nliable for a partnership obligation incurred after dissociation, except as otherwise\nprovided in subsection (2) of this section.\n(2) A partner who dissociates without resulting in a dissolution and winding up of the\npartnership business is liable as a partner to the other party in a transaction entered\ninto by the partnership, or a surviving pa rtnership under KRS 362.1 -901 to 362.1 -\n908, within two (2) years after the partner's dissociation, only if the partner is liable\nfor the obligation under KRS 362.1 -306 and at the time of entering into the\ntransaction the other party:\n(a) Reasonably believed that the dissociated partner was then a partner;\n(b) Did not have notice of the partner's dissociation; and\n(c) Is not deemed to have knowledge under KRS 362.1 -303(5) or notice under\nKRS 362.1-704(3).\n(3) By agreement with the partnership creditor and the partners continuing the business,\na dissociated partner may be released from liability for a partnership obligation.\n(4) A dissociated partner is released from liability for a partnership obligation if a\npartnership creditor, with notice of the partner's  dissociation but without the\npartner's consent, agrees to a material alteration in the nature or time of payment of\na partnership obligation.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34500","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:57Z","sha256":"8fd4b976d0811eadd3e43506aa94475134dd2b3daf2da111df914d264fd4911c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-362.1-702","next":"us-ky/krs-362.1-704"},"notice":"GroundRules: Original legal text. Not legal advice."}