legal aspects of spouse leaving joint owned business and taking on new business partner

Decatur, GA Viewed 34 times. Posted about 1 month ago in Business

My wife and I have owned business together for 15 yrs. We are incorporated and I want her to leave the business to save our marriage. I have a new business partner. Should we dissolve current business and start new or can she leave and he steps in? What if any compensation should she get for running this business for yrs and never actually drawing a paycheck? Can I do any of this without her consent? Both of our names are on everything and I want her completely out of the business. Or she could continue to run that business and I would go in with the new partner and eventually buy her out. please advise - Is this your question? Add additional information

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Answers (2)

Angel Marie Van Wieren

This attorney is licensed in Georgia. Posted about 1 month ago.

The answer depends on the type of entity you incorporated under. The following link may be useful. http://www.sos.georgia.gov/corporations/ Select "Instructions and Customer Information."

I hope this information was helpful.

Angel M. Van Wieren

Glenn M. Lyon

This attorney is licensed in Georgia. Posted about 1 month ago.

Assuming you are a corporation, it depends on the corporate documents you have in place. It is certainly possible to have her sell her shares either directly to your new partner or have new shares issued to him.

Regarding compensation, if there is an agreement with the company to pay her a certain amount, she can certainly ask for it. Otherwise, it depends on the documents. However, it is unlikely she will willing sell her shares for little or no compensation, and you typically cannot simply kick a shareholder out without consequences.

The final option would be to file to have the company judicially dissolved, but that is generally not a good option for any party.

If you would like to discuss any issues further, please feel free to contact my office. The link to my contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

MacGregor Lyon, LLC