It was once said that “a partnership is the only ship sure to sink” and whilst that may sound very pessimistic the reality is that many partnerships (just like marriages) can collapse over time. A partnership agreement is in many ways like a pre-nup agreement in that if properly drafted, it can cover many contingences for how matters are dealt with, not only during the course of a partnership but in the event of the partnership breaking up. The best time to have a partnership agreement prepared is right from the outset however, even if you have been in business for some years it is never to late to enter into a partnership agreement.