He can take you to court, but if what you say is true and you can prove that, he will likely lose. It appears that your signing over the other business of yours was consideration in exchange for his half of the business. The only way he wouldn't lose is if he could prove that your doing that was payment for something else, meaning you had never bought him out of his equity in the business or that his remaining equity in the business is in excess of more than half the value of that property.
HOWEVER, even if you lose, in as much as he could be awarded up to half your business's property, you wouldn't have to pay him its worth right then but only when you sell it. That is to say that he can't make you liquidate the business to buy him out of his equity in it. So as long as you tie those assets up in the operation of the business, he not only doesn't get his money, but also he's on the hook for half the maintenance and upkeep if he wants to keep his interest. So how you would stick it to him is by doing that and never, ever liquidating the business, thus forcing him to pay you in perpetuity half of all maintenance and upkeep on the property awarded to him. Of course, you could make a standing offer to him that at any point you will free him from that financial obligation if he simply signs his interest over to you. Now, if such a judgment then entitles him to half the profits, you then mitigate those profits by paying yourself a salary commensurate of all the work you do running the company, something he can't claim, in order to drive down the net proceeds of the business, its profit.
· 2 years ago