The two larger questions
1. Do you have in your files conclusive documentation to prove the business agreement and your 50% interest in the business? i.e. (A) terms, including (i) you are working for a share of the profits and not any other compensation; and (ii) the valuation of what each of you contributed (i.e. working capital) at the start up of the business. After start-up you need to keep (B) an accounting of what value you have since (i) contributed or (ii) obligated yourself to by use of personal financing that is to be paid out of your share of the profits.
2. Was the house itself acquired with personal financing? Regardless of the name the house is deeded in, it is a partnership asset if there is a loan that must be paid off BEFORE remaining profits are to be divided.
Last edited by Sharon Snell; 02-07-2010 at 07:42 AM.
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