Q & A Table of Contents
We're Splitting Up, But I Don't Want To Leave Our Business
From: Kathy, Waterloo, Illinois
Question: My fiancé (soon to be ex) and I entered into a bar business three years ago. We are buying the place bond for deed after leasing for a year.. All licenses and bills and the corporate name are in his name only. We have the bond for deed in both our names. Things are not working out and he wants to sell but I have worked to hard to give this up. What can I legally do?
Response: I haven't a clue what 'bond for deed' means, but the fundamental facts you present are fairly clear. If I understand you correctly, you want to end the personal relationship and, despite your fiancé's desire to get out of the business, you want to continue with it.
We do not offer legal advice. It would make sense for you to attempt to negotiate with your fiancé to reach a settlement with which each of you is comfortable. One approach could be to offer to buy him out, thus obtaining ownership of the corporate name and the licenses and other corporate assets -- and liabilities. It may well be that if the bar has not been profitable, your fiancé may be pleased just to get rid of its indebtedness or other liabilities.
You need to think about your BATNA, your Best Alternative To a Negotiated Agreement. Would it make financial sense to a) buy our your fiancé for a payment right now?, b) pay him off over time?, c) buy the corporation out of bankruptcy, or d) take over the corporation with its liabilities and let him off free of debt?
Would you be better off letting the existing business disappear, and, once it is closed, start over again in the same location? I recognize the licensing issue could be a challenge in this situation, but you must have a reasonably clear idea of the choices and challenges you face.
Do the personal relationship's problems stem from the business -- or has the business relationship deteriorated because of your personal issues? Would you and your fiancé give the same or similar answers to those questions?
You need to separate business and personal issues, prioritize your interests in each case, and then focus on how the choices you can make will serve or harm those interests.
It sounds like a complex and vexing problem. I wish you good luck.
Steve
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