When in a business with another person and the business decides to split should everything also be split including product inventory and supplies?
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When in a business with another person and the business decides to split should everything also be split including product inventory and supplies?
My mother-in-law and I started a small sign making business we both have put the same time money and effort into this business. She decided when I moved out of her home the business was no more. I think everything should be 50/50 but she seems to think whatever I made I keep and vice versa even though she has benefited off some signs in the past that have already been sold.
Asked on October 2, 2017 under Business Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Legally, you are correct: unless there was an agreement to the contrary, when a business with two equal owners is dissolved, each one gets 50% of its remaining assets, money, etc. (after first paying off any remaining business debts). But she wil not agree to that, you'd have to sue her to enforce a 50-50 division; you need to consider whether the time, cost, and famly acrimony of that is worth whatever additional amounts or items you hope to get.
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