Legal Question in Business Law in Canada

Re: ownership dispute!

Hello Sir:

I should first let you know that I practice in British Columbia so if you are located somewhere else in Canada some of what I say may not apply.

My response to your question is as follows:

1. You and your wife jointly own the business as equal partners based on your initial financial contributions unless you have an agreement to the contrary (e.g., that you and/or your wife would own unequal shares in the business).

2. Because the legal ownership is in your wife's name, your interest is an equitable interest which means that your wife holds your one-half interest in trust for you.

3. The legal nature of your business is a proprietorship or simple partnership unless you and your wife incorporated a limited company. The legal significance of this is that the business is not a separate entity and you and your wife own all the business assets personally.

4. Your wife's brother's entitlement be part of the business is subject to you and wife agreeing on this role.

5. As you are a equal partner with your wife in this business I suggest that you address the issue of ownership with her.

6. If you do not see eye to eye on this, then perhaps you should discuss ending the partnership and getting your interest paid out.

I trust this is helpful.

Regards, MELDON ELLIS