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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41220
Experience:  Run my own successful business/contract law practice.
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I have an old partner who contributed some goods as a way to

Customer Question

I have an old partner who contributed some goods as a way to pay me back on an old debt. These goods were used(in a small way) in the creation of a new business that my wife ownes and I do not own. Now this old partner is saying that we were partners on my wifes business because he gave these goods and that we owe him a percentage of my wifes business. He is on NO business documents . We signed no agreements on anything like this Its just coming out of the blue Does he have any right to this buisness? What should I do?
Submitted: 6 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 6 years ago.
Thank you for your question.

I will do my best to assist you with your issue. While I am permitted to provide you with legal information, I am prohibited by JustAnswer.com as well as various state bar associations from giving specific legal advice, provide representation, or enter into an attorney-client relationship through this open and non-confidential forum. Do you understand and agree to these provisions as well as JustAnswer.com's disclaimer?

Sincerely,


Dimitry Alexander Kaplun, Esq.
Customer: replied 6 years ago.
yes i agree
Expert:  Dimitry K., Esq. replied 6 years ago.
Thank you very much for your agreement.

Those goods were given to you directly, correct? And the debt was purely yours, and your wife was not in any way involved in this debt?
Customer: replied 6 years ago.
they were given directly to company. I told him just to put some stuff on a credit card since it was the only way to get paid back. I believe my wife had no connections to any of the debts
Expert:  Dimitry K., Esq. replied 6 years ago.
Then your friend has absolutely no right to a portion of this business.

The goods provided were for a personal debt, not for a business debt. You, in your ability as the principal of the business, removed some of those goods personally given to you for the debt in the business to your wife. There was no business transaction involving companies, but a private transaction between spouses and her business. Unless there was direct paperwork showing that the business actually had some sort of an agreement, the partner has a low chance of prevailing against you. You owe him nothing.

Good luck.

Edited by Dimitry Alexander Kaplun on 9/6/2010 at 6:40 AM EST
Customer: replied 6 years ago.
Ok, but the debt he owed me was a business debt we both had in our old business. Does the answer you gave still stand
Expert:  Dimitry K., Esq. replied 6 years ago.
Oh I see. That does muddy the waters. He can claim that the debt went into the business, and was turned into an investment, which was later invested into your wife's company. That is a fairly legitimate and good argument on his part. The way to counter it is to claim that the investment into the old business was never reinvested but "sold" to the company--just make sure that the sale documents exist, as otherwise he really can demand a portion of the profits by claiming that a portion of the business that you own jointly is for all practical purposes a partial owner of your wife's business.


Good luck.

Edited by Dimitry Alexander Kaplun on 9/6/2010 at 6:51 AM EST

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