Starting a Business

How can I end a partnership with my ex?

I own 75 percent and she has 25 percent (it's all in writing). She does not do her part in trying to build the business or basically anything pertaining to the business. I am frustrated about the situation. We have not made a profit and everything is in the beginning stage. Also, I have decided to change the name of the business from the one on our written contract. Please note she's my ex-wife and the mother of my two children (bad mistake).
min read
Opinions expressed by Entrepreneur contributors are their own.
If your partnership agreement contains the right provisions, you can purchase your ex-wife's interest in the business from her according to the procedure and valuation formula in the agreement (please, tell me you have them). If everything is in the beginning stages, this should hopefully not cost you too much. She needs to be told that this isn't working and that you'd like to buy her out. Speak to an accountant to determine the price and an attorney to draw up the necessary papers. In addition, if her interest in the business came as a result of your divorce settlement, make sure that your attorney has an opportunity to review the settlement papers to ensure that the procedure you follow to buy her out won't breach the terms of that agreement. However, if your partnership agreement does not contain these provisions, you may find yourself embroiled in a court fight, perhaps not unlike the one involved in ending your marriage relationship. Again, speak with your advisors--under those circumstances, it may be better to close your doors and walk away (to start another business by yourself) than to wrangle over a company that isn't yet profitable.

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

It Started As a Joke and Turned Into a Startup That Raised $1 Million in Funding