How much should I have to pay my partner to buy him out if we have a 50/50 partnership agreement we signed?

Asked over 4 years ago - Chicago, IL

We don't see eye to eye but have come to the conclusion that we have to split.He is a very judgmental person that feels that he has got the business where it is because he does all the financials but I have done all the sales and without sales, there is no business. He wants me to pay him $30,000 for a business that only brings in $30,000 and that is before the bills are paid. I feel that $15,000 is 50% of the business. We signed a very vague partnership agreement when we started stating if one partner decides to dissolve the remaining partner will pay the other 50% of the business but he has talked to an attorney that told him that I should pay him 2 times the value of the business. How is that? I am at my wits end here and need all the advice I can get please.

Attorney answers (1)

  1. Teri A. Walter

    Contributor Level 19

    Answered . A couple of options come to mind.
    First, you could tender the $15,000 along with a written offer to purchase his portion of the partnership for that amount. If he refuses, you may be able to sue for breach of contract. Be prepare to prove the value of the business, which is most likely the value of the assets less the liabilities - not the annual revenue. One of the interesting things about your partner's argument is that he thinks he causes the business to have value, but wants to be paid for that value, even though he won't be there after the sale. If he's really the most valuable thing about the business, he can't sell his interest in the business for what it's worth with him in it, because he won't be there anymore.

    The other option is to let him buy you out for $30K.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

31,575 answers this week

3,277 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

31,575 answers this week

3,277 attorneys answering