Q: I am trying to dissolve a 50/50 partnership. Do I have to pay half of debt ($3,250)if my total contribution is $5200?
Hello,
So my business partner and I are 50/50 owners from Fall 2014 to Now(Dec 5th 2015).
We informally agreed to end the business, to which know he denies. In the first 3 months of start up I contributed about 4200 vs his 100.00. As of today, contributions are my 5170 vs his 782.
Our credit debt is now 6500, split to 3250 each before interest.
Btw, he is the business Credit card holder, I am an authorized user.
Since my total contribution 5170 is higher than my owed 3250, and the difference between our contributions 4388, I would think it was reasonable for him to take both halves of the debt (my 3250 + his 3250). To which he says "what about all the interest?" He wants me to make monthly payments with him on the card including interest, and THEN pay me my entitled $4388
I don't see how it's right for me to be liable for the interest let alone half the remaining debt.
Am I wrong ??
A: A lot more information is needed to answer your question. How much work was/is being done by each of you? What is the value of the work? Does the business have any assets, cash, or inventory? Are some of those things either he or you contributed? What is their value? What debts were paid for with the card? Is there disagreement about whether those expenditure were business related, or necessary? Does the business have any receivables? What is the value of those? Are there outstanding jobs that must be completed? How much work is involved there?
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