Question about an accrual account and business checking account?
My familiy owns 50% of a business, and there is a business partner who owns the other 50%. Due to health issues the business partner is selling her half. She has decided that when she sells, she is taking the contents of the accrual account and the checking account (and possibly any other savings). This seems extremely wrong, and possible illegal to me. Can anyone tell me if this is in fact something that shouldn’t happen, and what we can do to stop it? Thank you very much.
The basic answer is: Disposition of assets upon severing a partnership is governed by the written partnership agreement. Partners can enter into any agreement they want. If the partners failed to execute a partnership agreement that addressed how partnership assets would be handled when a partner leaves, the default answer would be equal sharing, but if one or more partners disagrees with equal sharing the final recourse would be to go to court. The court may weigh other evidence (such as who has contributed equity, and what type of equity, to the partnership) to determine an equitable distribution. ‘Course if you go to court the only people who will be sure to share in the partnership assets will be the lawyers.
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