Hi,
I was just curious if there were any tax implications or legal issues I would need to consider in order of breaking up a business relationship. And how would I go about breaking it up – how could I justify the reason…
thanks…Kind Regards,
George
I have a partner in my business of prop. investing. We are about to settle on the 1st investment together on this Friday and the second in early May.Things are not going too well and before we lose our friendship aswell because we continually argue, I would like to know how to break the partnership. It might be easy but how and what do I do with the properties I am about to settle with him. We opened an account in which we deposited alot of money (equally) but I would like to split the partnership and invest alone. Any help or advice is greatly appreciated. Thanks.
Kind Regards,
George“If You never never ask, you’ll never never know”
I assume the best way to break a partnership is to discuss it with your partner.
Decide the value of joint assets and distribute/sell accordingly.
If you had a partnership agreement, then see a solicitor to see how to cancel.
If you sell your portion of a property then you may incur some form of tax eg CGT.
Did you guys discuss what to do if the partnership failed. If so, do what you guys discussed earlier.
My father had a partneship with his brother. They have not spoken to each other for 25 yrs. And I have not seen my 3 cousins in that time at all.
George,
I have no idea about the tax implications etc, but I would imagine if you are feeling really uncomfortable about the JV BEFORE you settle, then it might be time to get out now. Do you have an accountant you can dicuss things with?
I guess it’s possible for you to buy onew of the IP’s each. If you and your partner can afford to buy 2 IP’s together, can you afford to buy 1 each?
Guess this can be the trouble with joint ventures sometimes. I’d rather screw up my own finances than have someone else do it for me [guilty]
Best of luck with it, George. My advice- run away now. It’s your financial future you’re dealing with. Others might disagree though
In response to your question about givcing a reason to your partner… well, you stated you and your partner argue all the time. Chances are you might just be able to say, “I don’t htink this is working out”, and your partner might agree with you.
kay henry
Geo
I was involved in a few partnerhips. Only one was written one and it was with my family member.
With the written one, we just sold businesses and there were no break ups in volved, but we are not in a partnerhip now and the paper still stands. no need to do tax as we are not trading….or active.
The other was just verbal agreement, earning some big incomes at times. We did argue, but we talked about what we didnt like and how we were going to manage this. Sometimes you can turn it around and the business was sold eventually, but we lost it many many times,but we also talked heaps too. I can tell you there were many tears as we became close friends along the way. we folded our own agreement.
I dont know if it is that bad, dont settle delay maybe? seek advice now before it settles. maybe change the names on contracts, might cost a bit…if it can be done.
how come you were doing this and did not factor difficulties and scenarios in? lets put it this way, sometimes money can ruin a partnership, and my parents would never be in business together or they wouldnt be celebrating 50 years next sept!
sorry this is happening but better now than more properties down the track
I would still enter a partnership again, but like Kay, I like to have control of my own things and finances whe working with another you have to talk it over first with them before making a move on anything. just have to simple saves more problems
elves
” a blind man may see what a sighted man may not”
thanks to all – your advice is much appreciated. Thanks agin.
Kind Regards,
George.“If You never never ask, you’ll never never know”
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