Terminating a partnership

Answered according to Hanafi Fiqh by

Q: I have decided to terminate my partnership and need help regarding the following:

1) We will be finalising the balance sheet and come to a nett figure. Is it correct to calculate the nett value of the business after depreciating all the assets to current market value?

2) All accounts receivables will be calculated at 100% recovery rate less standard discounts that clients would normally take. This figure will than be used as the nett value against monies receivable. The partners agreed to this recovery rate.

3) The partners have agreed on a repayment plan.

Is the exiting partner entitled to a profit share whilst the outstanding monies of his hasn’t been paid from the business. Does this apply whether the exiting partner comes to the work place or not. We understand that as partners we are not entitled to a fixed salary but rather to profit share.

4) Is charging for future earnings permissible. Is there any kitaab that we can read that will have shariah rules to answer all the complexities of desolving a business partnership. May Allah Ta’ala guide us all.



1. Yes.

2. If any one partner wishes to forgo any part of his right he may do so individually without coercing the other.

3. The partnership remains until both the partners have terminated. Once the partnership has been terminated and one has bought out the other then the one who has been bought out will only receive the amount that he was bought out for, not anything more than what was stipulated at the time of separation.

4. Once the partnership has been terminated, the exiting partner does not have the right to ask for anything above the sale price.

We do not know of any such english book.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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