What is the legal division of business profits upon sale?
Question Details: We have small business that we're thinking of selling. The initial set up involved a monetary amount being contributed by both sides. Within contract it is stated both parties shall invest equal time in business and any help as necessary. One party has done nothing beyond initial investment. Legally, upon sale of said business, since said party did not live up to contractual responsibilities, are they entitled to any monies beyond initial investment if/when business is sold?
How hard or equally the owners worked has nothing to do with how the proceeds or profits are split. They are divided strictly according to ownership. If you and the other side were each 50-50 owners of the business, you split the profits 50-50.
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