No Partnership Agreement
I have recently had to ‘walk away’ from a business that i spent practically 24/7 building for the last 2 years.
Originally i agreed to assist an old colleague (known for 8-10yrs) in taking his relatively new small business to the next level. I began working on basic docs and business plan for him (free) and ultimately we agreed on a $2000 pm as a contracting fee for 15hrs work. within a few months he asked me to come on as his 50/50 business partner. The business relies on sales & commissions for income and it was only him and assistant employed. long story short i agreed and we began a 50/50 arrangement financially and ultimately via the formation of a new pty ltd company.
The nature of the industry requires expensive license and as the current one had 12 months to run we slowly transitioned to our new co owned brand.
Late last year i found out he was spending circa $1200day (substance abuse) and he would rarely be avail for work between that, starting a retail business with one of his 5 girlfriends or overseas visiting the others.
he ended up blowing everything whilst not paying any of our business expenses (which had already been paid in full by our customers). he would regularly withhold partner from everyone including me.
the following 3 months he spent in court fighting ex wife who had lodged a violence order against him.
i ultimately was left to the most of the work and pay most business expenses personally. getting paid was always a nasty situation which would end in hundreds of insulting and offensive txt msgs.
I would estimate in this period we contracted future business income of $600-$900k due within next 12 months.
about a month ago in the middle or moving into a new reno (for which the final payment was due) he began on a ridiculous spiral brought on by me requesting my bank card for business accounts that he had been withholding. This resulted in him “firing me” and deleting all my remarks / files.
He then sent an email suggested i owed him and he would not pay the circa $60k he already had not paid me. from this point he has also refused to pay the circa $150-$200k due to me in next 12 months.
In hindsight the liability of being in business with him was unbeleievable as he regaurly broke laws (governed industry).
My personal solicitor says it last not worth pursuing as he is already black listed re credit and owns nothing. he does however have large future payments due.
It feels impossible to walk away from the money he owes me but I wouldn’t want to lose anymore personally at this point is it too risky to pursue?
I have recently had to ‘walk away’ from a business that i spent practically 24/7 building for the last 2 years.
Originally i agreed to assist an old colleague (known for 8-10yrs) in taking his relatively new small business to the next level. I began working on basic docs and business plan for him (free) and ultimately we agreed on a $2000 pm as a contracting fee for 15hrs work. within a few months he asked me to come on as his 50/50 business partner. The business relies on sales & commissions for income and it was only him and assistant employed. long story short i agreed and we began a 50/50 arrangement financially and ultimately via the formation of a new pty ltd company.
The nature of the industry requires expensive license and as the current one had 12 months to run we slowly transitioned to our new co owned brand.
Late last year i found out he was spending circa $1200day (substance abuse) and he would rarely be avail for work between that, starting a retail business with one of his 5 girlfriends or overseas visiting the others.
he ended up blowing everything whilst not paying any of our business expenses (which had already been paid in full by our customers). he would regularly withhold partner from everyone including me.
the following 3 months he spent in court fighting ex wife who had lodged a violence order against him.
i ultimately was left to the most of the work and pay most business expenses personally. getting paid was always a nasty situation which would end in hundreds of insulting and offensive txt msgs.
I would estimate in this period we contracted future business income of $600-$900k due within next 12 months.
about a month ago in the middle or moving into a new reno (for which the final payment was due) he began on a ridiculous spiral brought on by me requesting my bank card for business accounts that he had been withholding. This resulted in him “firing me” and deleting all my remarks / files.
He then sent an email suggested i owed him and he would not pay the circa $60k he already had not paid me. from this point he has also refused to pay the circa $150-$200k due to me in next 12 months.
In hindsight the liability of being in business with him was unbeleievable as he regaurly broke laws (governed industry).
My personal solicitor says it last not worth pursuing as he is already black listed re credit and owns nothing. he does however have large future payments due.
It feels impossible to walk away from the money he owes me but I wouldn’t want to lose anymore personally at this point is it too risky to pursue?
