Is this legally?

[ninana]

Hello
In July 2009 I and my husband bought an established engraving business in partnerships, we incorporated, and both put money into legal fees, software, getting a domain, machine, etc We do not have a buy-sell agreement or any exit agreement. We were separated. I left the business in 2010, we are in divorce, my husband won't agree to buy me out. He dissolved the business and restart it working as a sole trader, leaving me with nothing. I am only asking for the money I put in. Is this legally?

[dotty.]

you seriously need to see a solicitor

[boxtops]

This should be part of your divorce settlement - I hope that you are already taking legal advice about sharing all your assets including your house.

[Mosaic]

It depends on the laws in the country in which this occurred. If it is the UK, yes, get a solicitor and go through the process of retrieving your property.

[Baldric]

Is it 'Legally' what?

[beso]

Aside from the divorce settlement issues.

Who is the registered owner of the original company? He cannot simply dissolve it without your permission if you are an owner. If you are a part owner of that company you are entitled to your share of its assets when it folds.

Whose name is the domain registered in? Who holds the software licences?

If they were held in the name of the now defunct company then he may be illegally using the domain name and software licences.

You need to urgently see a solicitor.

[chas2008]

partnerships are a dodgy area, cost me £1,000s....think yourself lucky he didnt rack up any debts...or has he?

'Without an agreement to the contrary, partners are personally, equally and severally liable for all business debts '...

wether you are aware or not... what happened to the bank accounts ?

[NOX]

I think it depends. There are two sides to this and two ways of looking at it. You were allegedly a partner yet you say you 'left the business in 2010'. If this is the case what is someone who is your partner to do? If it is unworkable to manage without you in the existing set up, and you aren't there, I don't see that he had any choice but to stop himself. The fact that he then restructured work he was obviously experienced with and set up a new company as a sole trader is neither here nor there to your original problem and it would not be in his interest to buy you out of a non trading company. That part is very simple. The difficulty arises if you were indeed legal partners and he dissolved the company without your agreement, or if he is possibly still using the domain name etc, but it's unreasonable and illogical to think that he wouldn't set up his own company doing exactly what he was before because that's what most people would do. Get some good legal advice and see what you can salvage, as someone else said it should be part of your divorce settlement.

[tonywiltshire]

A Partnership is an association of 2 or more people formed for the purpose of carrying on a business, a partnership does not have a legal personality of its own and usually governed by the Partnership Act 1890. It is possible to have a limited partnership which is controlled by the 1907 act, or a limited liability partnership defined under the limited liability partnership Act 2000.
Incorporation is the formation of an association that has a corporate personality distinct from those of its members.
I suggest you seek professional advice as soon as is possible.

[IggyB]

what do you feel your business is currently worth, bearing in mind it is no longer trading?

If you left the business in 2010 then it would appear that it was you that dissolved the partnership. At this point the assets should have been sold, debts paid and profits split in accordance with partnership agreement (taking into account capital invested in the business start up).

The items you list have no value or little value after you dissolved the business e.g. legal fees, software licenses, domain names... the unspecified machine might have some value still? Were there any profits in the accounts that could have been split or did you just take the operating profit as you went along.

What I'm getting at is was there any value in the business to give back? If you left the business / dissolved the partnership then that business effectively ended so provided you split the debts and the profits equally there is no 'buying out' to be done as the business is closed - you can't buy someone out of a finished business.