If the company is incorporated or if it is a partnership, you would take the assets that comprise the tire service business and put them in a new business. I suggest you incorporate the business and issue all the stock or if you do an LLC all the membership interests to yourself. That will make you the sole owner of the tire service business. Then you prepare a document that says all the assets that constitute the tire service business have been transferred to your company in exchange for your interest in the existing business. If the ownership is reflected in stock of a corporation, a membership interest in a LLC or a partnership interest in a partnership, that ownership interest would be transferred to your ex or back to the company in exchange for the assets transferred to your company. You would then resign from all positions in the existing company and you would both go your own separate way.
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Can you explain to me what any of this would do to me tax-wise?
It should not have any tax impact on you as the assets you acquire will have the same tax basis as they did in the origianl company. You should consult with an tax attorney or accountant to structure the exchange of ownership so as to avoid taxes.
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