Provided by: Jennifer Kirschenbaum, Esq.
November 28, 2023
Question:
Jennifer,
The past few months, my partner has been abusing our corporate cards. What recourse do I have?
Thanks,
Dr. H
Answer:
Depends on what you have agreed to. To assist, I would have to view your operating agreement, partnership agreement or shareholders agreement, depending on how you are structured. That governing document typically has provisions, dictating how partners will share in compensation and profit. If the governing document is silent to expenses or monetary split, at a minimum, you likely have tax documents, indicative of ownership, interest. If you have no agreements, no tax documents, but an informal relationship where you’re sharing money, that’s going to be tougher.
With any dispute, the easiest way to resolve is by agreement. Knowing where you stand in your rights is the first step; addressing your partner, and coming to a resolution is hopefully a second step. Should peaceful negotiation fail, litigation will be dictated by contractual rights, and or agreements between the parties. Hopefully rectifying the money split and rights on a go-forward basis will not come to litigation. Not a great idea: match the spending and avoid discussion.
For those reading thinking of venturing into a partnership, let today’s question be a lesson of the importance of finalizing critical agreements on your way into a relationship that will dictate how decision making and monetary splits will be handled over the course of the partnership, and also, divorce.
Thanks,
Dr. H
Answer:
Depends on what you have agreed to. To assist, I would have to view your operating agreement, partnership agreement or shareholders agreement, depending on how you are structured. That governing document typically has provisions, dictating how partners will share in compensation and profit. If the governing document is silent to expenses or monetary split, at a minimum, you likely have tax documents, indicative of ownership, interest. If you have no agreements, no tax documents, but an informal relationship where you’re sharing money, that’s going to be tougher.
With any dispute, the easiest way to resolve is by agreement. Knowing where you stand in your rights is the first step; addressing your partner, and coming to a resolution is hopefully a second step. Should peaceful negotiation fail, litigation will be dictated by contractual rights, and or agreements between the parties. Hopefully rectifying the money split and rights on a go-forward basis will not come to litigation. Not a great idea: match the spending and avoid discussion.
For those reading thinking of venturing into a partnership, let today’s question be a lesson of the importance of finalizing critical agreements on your way into a relationship that will dictate how decision making and monetary splits will be handled over the course of the partnership, and also, divorce.
