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  1. Game Changer

    Game Changer Entrepreneur

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    My partner and I have had a major dispute where he has verbally abused me to the point where I no longer want anything to do with the business. We have no partnership agreement. He offered to buy me out of the business for a fixed sum and a share of the profits to date. He then decided that he didn't want to do that. I can't afford to buy him out so I'm looking for a bit of advice on how to go about dissolving the partnership? Or if there's another option?
     

  2. harpazo22

    harpazo22 Entrepreneur

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    You definitely need to get something down in writing so the situation can't come back to haunt you legally. You should try to work it out since he doesn't want to buy you out and you can't afford to either. You need to find something that'll work for both of you but he needs to know it's a partnership and he can't treat you the way he has.
     
  3. dyanmarie25

    dyanmarie25 Entrepreneur

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    Well, I guess you really have to discuss this issue seriously. If he changed his mind about buying you out, and you don't even have the money to buy him out, I think you have to make an agreement that would be totally fair to both of you. Probably you can work things out and see what happens.
     
  4. Kathryn M.

    Kathryn M. Entrepreneur

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    I would dissolve the partnership as soon as possible, before the partner can cause any more chaos.

    Then I would make a contract with this plan written inside:

    - Use all money that is still in the business to pay off all debts currently owed by the business.
    - Any remaining debts will be evenly split between the two parties and paid from personal finances.
    - Once all debts are paid in full, both parties agree that the business is dissolved and terminated.
    - Neither party can come back later on asking for money from the business.

    I would have a copy for yourself and a copy for your partner to sign before you start the plan, and both of you sign if after the plan is completed. In case you end up in court, you will have your plan in writing as a contract that you both signed.
     
  5. pwarbi

    pwarbi Entrepreneur

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    I'd also tend to think that by looking at the situation, you may not have very many other options but to dissolve.

    Seeing as you said your partner agreed to buy you out but now won't, can I ask is there a business reason behind that, or is it just them being awkward?
     
  6. KenBrace

    KenBrace Entrepreneur

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    That sounds like a nightmare. You definitely need to know a person well before you go into business with them. And even then it's a good idea to get an agreement written down so that you don't end up screwed.

    The only other option I can think of is to try and sell your piece of the business to someone else.
     
  7. pwarbi

    pwarbi Entrepreneur

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    Selling your share of the business to another party is an option, but sometimes when a partnership is drawn up, there can be a clause in there that you can't sell unless the other party agrees, and if your not on the best of terms, it's highly likely they'll refuse the request, sometimes even just out of spite.
     

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