Legal Question in Business Law in California
I'm am the co-owner of a business with a partner. When we entered, we had agreed to a 60 -40 split favoring me. Now she is claiming that we have a 50-50 interest in the business. I have contributed more time and more money to the venture. We don't have a written agreement. What are my options? Thanks in advance.
3 Answers from Attorneys
Options? Ignore it and hope it goes away. Negotiate a resolution between the parties, with or without the aid of attorneys. Litigate when you can't stand it or control it anymore. You'll use whatever facts and evidence you have to support your position. You've now learned the lesson that doing things right is the only way to behave in business, meaning that everything is properly documented in writing. Ronald Reagan's famous line "Trust but verify" applies throughout life. If you get serious about getting legal help, feel free to contact me.
Mr. Nelson is entirely right about your options, and that you are learning the lesson that you have to document everything in business. If you think the services of a mediator would help you and your partner resolve this situation, I have conference facilities in Carlsbad and do not charge for travel.
Just because you don't have a signed written legal document doesn't mean you don't have evidence of your 60/40 split. Are there emails? Initial contribution checks that reflect the split? If you have evidence, use that to convince her and document now the initially agreed upon contribution amounts.
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