Colorado § 7-60-142 - Rights of retiring partner.

§ 7-60-142. Rights of retiring partner.

When any partner retires or dies and the business is continued under any of the conditions set forth in section 7-60-141 (1), (2), (3), (5), and (6), or in section 7-60-138 (2)(b), without any settlement of accounts as between the partner or the partner's estate and the person or partnership continuing the business, unless otherwise agreed, the partner or the partner's legal representative as against such persons or partnership may have the value of the partner's interest at the date of dissolution ascertained and shall receive as an ordinary creditor an amount equal to such value with interest, or, at the partner's option or at the option of the partner's legal representative in lieu of interest, the profits attributable to the use of the partner's right in the property of the dissolved partnership; except that the creditors of the dissolved partnership as against the separate creditors, or the representative of the retired or deceased partner, shall have priority on any claim arising under this section as provided by section 7-60-141 (8).

Source: L. 31: p. 674, § 42. CSA: C. 123, § 42. CRS 53: § 104-1-42. C.R.S. 1963: § 104-1-42. L. 2004: Entire section amended, p. 1431, § 97, effective July 1.

ANNOTATION

Method of valuation of partnership interest. In consideration of the uniformity, certainty, and ease of application promoted by adoption of a per se rule, as a matter of law, in the absence of a contractual provision to the contrary, an accounting between partners must be based on the fair market value of partnership assets at the time of dissolution. Rasheed v. Mubarak, 695 P.2d 754 (Colo. App. 1984).

Applied in Thompson v. McCormick, 169 Colo. 151, 454 P.2d 934 (1969); Jump v. Boardman, 169 Colo. 274, 455 P.2d 206 (1969).