Legal division of business profits upon sale
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Legal division of business profits upon sale
We have small business that we’re thinking of selling. The initial set up involved a monetary amount being contributed by both sides. Within contract it is stated both parties shall invest equal time in business and any help as necessary. One party has done nothing beyond initial investment. Legally, upon sale of said business, since said party did not live up to contractual responsibilities, are they entitled to any monies beyond initial investment if/when business is sold?
Asked on August 1, 2019 under Business Law, Oregon
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
How hard or equally the owners worked has nothing to do with how the proceeds or profits are split. They are divided strictly according to ownership. If you and the other side were each 50-50 owners of the business, you split the profits 50-50.
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