Can I legally take money out of my account when it is not my business anymore but the accounts are under my name?

I used to have a business partnership. We have split and my business partner does not want to pay many of my vendors and does not want to do the work for many clients any more, which has affected my relationship with both parties. His excuse is that he does not do that any more and he will not pay no matter what. The amounts are low, less than $2,500. He has accounts under my name which I told him I don’t want under my name anymore. Can I withdraw money from those accounts to pay my vendors and clients what he owes them? Those debts have been there since before I left the company.

Asked on November 28, 2011 under Business Law, California

Answers:

Steven Rinehart / Western IP Law

Answered 9 years ago | Contributor

No, if you sold the business and someone else owns it, anything in the business account is a business asset that no longer belongs to you.  If you sold only the business asset, and those monies were not included in the asset list, then yes, you should be able to take it.


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