An LLC partnership can collapse when a partner dies, becomes disabled, divorces, or leaves. Without a buyout clause in your agreement, you might end up owning the business with your partner's ex-spouse or watching them walk away while you're stuck with the debt.
So if any of these one things happens to any partner in the LLC— death, disability, divorce, departure— how are we treating that? If I'm the other partner in here and all of a sudden my partner's getting divorced, well, what's happening? I don't want your ex-spouse that you don't even like anymore, probably, to be in this business with me. What if you just want to leave the partnership too and you're going to leave me hanging and I got to do the whole thing? Well, do I get to buy your ownership out? Like, I don't want to be here just having to do all the work and now you're off in la-la land doing something else, or you're on a beach somewhere. Like, hey, great, just keep doing this, you know, you don't get to retain your ownership. So if you want to leave, like, or you want to sell or monetize that, you got to have a process for that.
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