{"data":{"id":"us-ky/krs-362.335","jurisdiction":"us-ky","citation":"KRS 362.335","heading":"Rights of partners to application of partnership property.","body":"(1) When dissolution is caused in any way, except in contravention of the partnership\nagreement, each partner as against his co -partners and all persons claiming through\nthem in respect of their interest in the partnership, unless otherwise agreed, may\nhave th e partnership property applied to discharge its liabilities, and the surplus\napplied to pay in cash the net amount owing to the respective partners. But if\ndissolution is caused by expulsion of a partner, bona fide under the partnership\nagreement and if th e expelled partner is discharged from all partnership liabilities,\neither by payment or agreement under subsection (2) of KRS 362.325, he shall\nreceive in cash only the net amount due him from the partnership.\n(2) When dissolution is caused in contraventi on of the partnership agreement the rights\nof the partners shall be as follows:\n(a) Each partner who has not caused dissolution wrongfully shall have:\n(I) All the rights specified in subsection (1) of this section, and\n(II) The right, as against each pa rtner who has caused the dissolution\nwrongfully, to damages for breach of the agreement.\n(b) The partners who have not caused the dissolution wrongfully, if they all desire\nto continue the business in the same name, either by themselves or jointly with\nothers, may do so, during the agreed term for the partnership and for that\npurpose may possess the partnership property, provided they secure the\npayment by bond approved by the court, or pay to any partner who has caused\nthe dissolution wrongfully, the valu e of his interest in the partnership at the\ndissolution, less any damages recoverable under subdivision (II) of paragraph\n(a) of subsection (2) of this section, and in like manner indemnify him against\nall present or future partnership liabilities.\n(c) A partner who has caused the dissolution wrongfully shall have:\n(I) If the business is not continued under the provisions of paragraph (b) of\nthis subsection, all the rights of a partner under subsection (1) of this\nsection, subject to subdivision (II) of paragraph (a) of this subsection.\n(II) If the business is continued under paragraph (b) of this subsection the\nright as against his co -partners and all claiming through them in respect\nof their interests in the partnership, to have the value of his interes t in\nthe partnership, less any damages caused to his co -partners by the\ndissolution, ascertained and paid him in cash, or the payment secured by\nbond approved by the court, and to be released from all existing\nliabilities of the partnership; but in ascertaining the value of the partner's\ninterest the value of the goodwill of the business shall not be considered.","path":["KRS Chapter 362"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34326","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:55Z","sha256":"45dc51da6939204b19aef2a1c0ef3bb1af1d5c35472af80c94508bb9c17cb6af","source_id":"us-ky","stale":false,"prev":"us-ky/krs-362.330","next":"us-ky/krs-362.340"},"notice":"GroundRules: Original legal text. Not legal advice."}