Kal's Kweries**

KWERY:I own 50% of a business, along with my partner who owns the other 50%, and we are not getting along. I want to get bought out at a fair value for my interest, but we don’t have a buy/sell agreement. What can I do?


RESPONSE:Hindsight of course is wonderful, a buy/sell agreement would have helped (maybe). However, in the absence of that, you either need to discuss the matter with your partner and see if the two of you can work it out; or you are going to have to initiate a suit, perhaps for the dissolution of the partnership, and see if that triggers negotiations between the two of you. Generally speaking, without some form of a written agreement, neither one of you is obligated to buy out the other. However, without one of you buying out, the resolution very well may be the liquidation of your business – in which case both of you will probably lose.

Tax Tip of the Week*

ASSETS AND BASIS
As part of the divorce process, typically assets are divided up between husband and wife. Some assets – such as stocks, mutual funds, real estate – can create a tax when sold (or if sold at a loss might create a loss for tax purposes) which will in turn need to be reported on the then asset owner’s tax return. The critical issue for such an asset is its basis – which for the most part means its cost. For tax purposes, the gain is the difference between the sales price and the cost (basis). As part of dividing up the property, the spouse receiving a certain piece of property/asset is entitled to also receive documentation in support of the cost/tax basis in that property.