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Can you be more specific about what you mean when you state "Am I able to bring this proposal up legally and only accept what I want for it?"
Valuating a small, closely held business is always a difficult task.
However, there is no requirement that your offer be at fair market value.
And even though you value the company at $40,000, there is no legal prohibition for your agreeing to buy your partner's 50% interest for less than $20k.
As long as you don't hide information or mislead your partner, and as long as the partner has a reasonable opportunity to consider your offer and seek counsel, an agreement between you regarding price will be enforceable.
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Since he does not want to sell his share, he wants to buy it. I value my portion at 20K. He values it at a lot less. Yet he won't sell it at any price... I just wanted to be sure that I'm not obligated to reduce my asking price just because he doesn't want to pay it. What would happen if we can't agree to terms?
No. You don't have to reduce your asking price.
If you can't agree on terms, neither party can force a sale.
Ok. I take it a lawyer is not needed in this type of situation?
No. Not when it is just the two of you negotiating.
If you reach a tentative agreement, it would be wise for each of you to have separate attorneys look over the terms.
That way, neither can come back and say the other mislead them.
Thanks for your time, i'm thinking being willing to pay the same amount i'm asking for is a fair deal correct? I will press accept after your opinion lol, thanks
Yes. I agree that that is fair.