What is the term for the action of leaving a partnership or LLC, thus relieving oneself of fiduciary duty?

Dissociation is the correct term for the action of leaving a partnership or limited liability company (LLC), which results in the individual being relieved of their fiduciary duty to the entity. This process allows a partner or member to exit the business relationship while clarifying their ongoing responsibilities and rights.

When someone dissociates from a partnership or LLC, it typically involves a legal process to formalize the exit, ensuring that debts and responsibilities are settled properly. The term highlights the specific legal implications and considerations associated with the withdrawal, distinguishing it from more informal terms like "resignation" or "withdrawal," which do not carry the same legal specificity regarding fiduciary obligations. It’s essential to understand dissociation because it impacts the remaining members of the partnership or LLC and can influence the continuation of the business and the division of assets.