A partnership, of course, does not last forever. When it ends,
it involves these three separate stages. The above terms are often confused. As they are used: (1) Dissolution is the change in the relation of the partners caused by any partner ceasing to be associated in the carrying on of the business. (Art. 1828.) It is that point in time when the partners cease to carry on the business together. It represents the demise of a partnership. (68 C.J.S. 842.) Thus, any time a partner leaves the business, the partnership is dissolved. (2) Winding up is the actual process of settling the business or partnership affairs after dissolution, involving the collection and distribution of partnership assets, payment of debts, and determination of the value of each partners interest in the partnership. It is the final step after dissolution in the termination of the partnership. (3) Termination is that point in time when all partnership affairs are completely wound up and fi nally settled. It signifies the end of the partnership life. It takes place after both dissolution and winding up have occurred.