Legal Question in Business Law in Utah

Partnership seperation

I have a client who owns 50% of the 'intellectual property' of some software that they charge clients to use. The contract only outlines the 50/50 ownership nothing else. Early on the other party decided to take 25% off the top to 'cover costs', this money isn't actually retained to cover actual costs, they simply take it as their own, my client didn't disagree so it went ahead which left 37.5% for his share of the proceeds. But months ago the other party had money problems and went a month without payment, when he finally was able to catch the person that manages the money he told him they couldn't pay him, since that time they have been paying him a set amount ($1250) instead of the actual 37.5% which has made the amount they owe him grow by $1000-$3000 every week and it is now approx $30000( this is an estimate based of the clients usage amounts, he has no actual exact amount because although he has requested an accounting repeatedly they will not provide one ). Most of the revenue is from the clients he has brought in and he is receiving approx 15%. He would like to separate, taking the clients he brought in, and setup his own system, leaving the current system and writing off what they owe him. What are his options?


Asked on 12/07/08, 2:36 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Partnership seperation

If the relationship is a partnership, then either partner can dissolve the partnership, which requires a full accounting of all expenses and income with all expenses paid first and the balance being split according to the partnership agreement (50-50). Funds owed to the partnership are accounts receivable, which is an asset which can be split.

Have you client call for a free consultation.

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Answered on 12/08/08, 10:55 am


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