Removing a partner from a business

[Netherfield]

Get proper legal advice before doing anything else, I've been through something similar, but every situation is different.

Check the partnership agreement as well, all partners should have a copy, in my case written in was the fact that if a partner wanted to leave they could take nothing out for a minimum 5 years, and had to give at least 6 months notice, this was stated to be more or less a standard arrangement.

 

[multi power]

The brother isn't the problem, his wife is the issue

 

[HolzKopf]

The brother isn't the problem, his wife is the issue

Is that true?

 

[Pennine Ploughing]

The brother isn't the problem, his wife is the issue

if it is the issue, then he should feck her off now, as when he gets half the farm, she will feck off then and take half of that

 

[chipchap]

if it is the issue, then he should feck her off now, as when he gets half the farm, she will feck off then and take half of that

Sadly so often the case.
The land ownership is probably best left with mum and dad for now.

 

[Pennine Ploughing]

Sadly so often the case.
The land ownership is probably best left with mum and dad for now.

I was meaning after mum and dads day,

 

[DrWazzock]

You get to the point where you just think I am trying my best, I can't really control the others, and so if it goes down, it goes down.

The others probably think the same.

 

[fishortcalves]

Sounds like something that could go on forever... I would speak to your dad about splitting up partnership and for him to split up the assets into two, equal amounts. Forget what your brother might owe to the business, without alot of money spent i doubt you'd ever see it again anyway. Your dad really should be handing down the farm/ assetssoon anyway to avoid inheritance tax, would be a good reason to kill two birds with one stone.

 

[chipchap]

Sounds like something that could go on forever... I would speak to your dad about splitting up partnership and for him to split up the assets into two, equal amounts. Forget what your brother might owe to the business, without alot of money spent i doubt you'd ever see it again anyway. Your dad really should be handing down the farm/ assetssoon anyway to avoid inheritance tax, would be a good reason to kill two birds with one stone.

If he hands it over during his lifetime there will almost certainly be capital gains tax to pay, although holdover relief could be used.
You will all need some good professional advice.
Furthermore if the rules on inheritance tax remain, there will be both business asset relief and agricultural property relief to rely on. It is most unlikely both reliefs will disappear, although Apr may be cut to only a proportion on unfarmed I.e. Tenanted land.

 

[organicguy]

Is that true?

Usually!

 

[DRC]

if it is the issue, then he should feck her off now, as when he gets half the farm, she will feck off then and take half of that

think he means the brothers wife. but thats an easy cop out. Someone said he's got a ten mill back stop, no he hasn't, he,s got nothing yet, as Dad owns it all and could leave it either way.
Parents largely at fault, for not sorting things

 

[Pennine Ploughing]

think he means the brothers wife. but thats an easy cop out. Someone said he's got a ten mill back stop, no he hasn't, he,s got nothing yet, as Dad owns it all and could leave it either way.
Parents largely at fault, for not sorting things

if his brother has not seen through it now, he will after the parents day, cause if she is high maintenance now, once he is left half the farm, she will think the ship has come in, and if he at that time tries to curtail her, she will just up sticks and take half of what he has been left,
they say love is blind, and a woman never really marries for money,
but by hell they will divorce for it

 

[DRC]

if his brother has not seen through it now, he will after the parents day, cause if she is high maintenance now, once he is left half the farm, she will think the ship has come in, and if he at that time tries to curtail her, she will just up sticks and take half of what he has been left,
they say love is blind, and a woman never really marries for money,
but by hell they will divorce for it

She might have the better career and income. Lots of old fashioned assumptions.

 

[Pennine Ploughing]

She might have the better career and income. Lots of old fashioned assumptions.

your right its far to outdated my post, and its something that would not happen in this day and age,
but where has the 250k gone ?

 

[DRC]

your right its far to outdated my post, and its something that would not happen in this day and age,
but where has the 250k gone ?

You may well be right, but he might also have expensive tastes.
Those old tractors don't do themselves up for nothing

 

[Doing it for the kids]

I sympathise and can relate in sorts, good advice above.

For others reading this, where possible try and compartmentalise assets so it’s easier to break things up if required in the future.

 

[oldoaktree]

I'll keep this short, one partner in the business is becoming a problem, takes too much financially out of the business and despite several warnings by bank manager and accountant continues to do so and I need it to stop ! There are 4 partners myself, my parents (both in their 70s) and older brother who is the problem. All land, buildings and houses belong to dad and we are partners in the business only, we are asset rich (£10mil +) but cash poor and have a very seasonal cash flow due to seeming to have to wait longer and longer for money from customers(small contracting operation) on top of normal income, grain sales , livestock etc. My question is how would I go about removing one partner from the business, I can't afford to take any legal advice from a solicitor at the moment and I am truly fed up ! I have always just kept my head down and worked and I am married with 2 small kids and older brother has dealt with (or not as the case seems to be) SFP stewardship etc. Brother has children at private school, a wife with expensive tastes and a expensive lifestyle. I know this sounds like the normal family farming situation but the one thing I do not want to do is upset my parents as I only have the upmost respect and their welfare in mind ! Can anyone help on here,by pm or steer me in the way.of someone who can advise me ! We are NFU members if that helps

Surely you can afford a 1st meeting with a solicitor to get them to out line your options then you can take it from there. It no use just have a meeting with the partners with no options for going forward. Unfortunately with the levels of assets there is there will be professionals involved .

 

[dannewhouse]

what about taking equal money out to him?
would he still take so much out if the business bank account wasn't looking so good?

real grey area, we had the same my grandad farmed in partnership with his brother who didn't care, bust stuff and ordered new just for fun …

 

[Doing it for the kids]

Could you just match his drawings then put it back in as a personal loan?

 

[DRC]

Should take the same drawings out each, paid DD into private account and not be able to pay for other stuff from farm account .