How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Buachaill Your Own Question

Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10189
Experience:  Barrister 17 years experience
53108719
Type Your Law Question Here...
Buachaill is online now

I broke up with my partner in February and we own a business

Customer Question

I broke up with my partner in February and we own a business together (a gift shop) We co-signed the lease but have no partnership agreement to tell us what happens in the event of a break up. He put the money in to buy the business, but I have been running it ever since (2 and a half years) He is not co operating in any negotiations, just saying he wants 100% of his money back, but the business isn't even worth that now. He considers me to have no financial stake as I put no money in. I have been told that as we are in a partnership but with no partnership agreement to say otherwise, this means we are 50/50 and that if we can't agree on a deal to buy one another out then the business should be sold and proceeds split between us. Is this correct? He doesn't agree I should have half so would we need to go to court? We can't afford to do so. I would have agreed to him having more than half as he put the money in but I have put 2 and a half years work in with next to no wages and don't feel I should walk away with nothing as he wants me to. We are at an impasse and I don't know what I can legally do as he won't agree to anything.
Submitted: 2 years ago.
Category: Law
Expert:  Buachaill replied 2 years ago.

Buachaill :

1. Where there is a partnership in existence but there is no written partnership agreement, then the provisions of the Partnership Act, 1890, apply by default. Within that Act there are provisions which apply to the winding up of a partnership. Basically, all debts are first paid, then capital sums repaid such as the money he put in at the start, and then the remainder is divided equally between you and him. So this is the position if you cease business today.

Buachaill :

2. However, this ignores the reality that you have a valuable business which can or could be continued by one partner after the other partner has been paid off. Additionally, there is the possibility that the business may be sold and money generated which would then be divided between the partners after capital sums have been repaid.

JACUSTOMER-taxrtjow- :

So, as he is entitled to take his investment out before profits are divided, and I know that the combination of the value of the lease and the stock is less than his original investment, then there is no way that any money will be due to me if the business is sold?

Buachaill :

3. Accordingly, you have a number of options. One option would be that you put a written proposal to this partner of yours that he be paid his capital sum but you get to continue the business in his absence. As part of this, youu can also look to pay him back his capital sum over time. A second option would be to cease operation of the business for one day and serve a notice of dissolution of the partnership. This would bring the partnership to an end with the relevant accounting taking place. Then a day or two later, you could then open up the same business in your own right effectively trading on the previous goodwill and clients of the partnership. Your former partner would be limited to getting whatever money was left in the partnership at the time of its dissolution. With this option however, you need to be certain that you can get the lease on any premises transferred over to you. So it will take a bit of doing.

JACUSTOMER-taxrtjow- :

Thanks. The business is currently closed anyway as it is seasonal and won't reopen until Easter. Please see question above re sale.

JACUSTOMER-taxrtjow- :

Also could you tell me a bit more about how I get out of the business, as I may as well do that if I can get nothing. Can I just resign from the partnership? Does this have to be done through a solicitor? Am I then free from any debt accrued from now on?

Buachaill :

4. To "get out" of the business, you simply serve a notice of dissolution of the partnership. That brings the partnership to an end. A solicitor will do this for you. Secondly, if the sale of the partnership or its assets do not exceed the capital put in, then you won't get anything from the partnership's dissolution, I regret to say. That is just simple economics.

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Last | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice
 
 
 

Related Law Questions