Dissolving a partnership

[tm6791]

What is the name of your state? Wisconsin

I am trying to dissolve a partnership with a "friend", which we are equal owners in a rental property. When we purchased the property we had a gentlemens agreement that if either partner wanted out the other could buy them out or we would liquidate the property. I have decided that i would like to get out of this partnership but he does not. He is willing to buy me out at 20% of the value of my share or is willing to put it on the market but well above the market price. He says he is not willing to sell because it is a depressed market and we wont get top dollar for property. From what i have read any partner has legal right to dissolve the partnership at any time unless otherwise stated in the initial agreement. So my question is if i pursue this case in the courts, what would be the general ruling or are there any known documented cases?

Tony

 

[seniorjudge]

The court will look at what each of y'all contributed and split up the assets and the liabilities.

Such a lawsuit should cost $20K and take three years if it is cheap and quick.

 

[tm6791]

So even though the property is a two family duplex and worth only $300,000, it will still get bogged down in the courts for a long time and cost me at least $10,000?

 

[tm6791]

Update

I have continued to try and settle this issue with guy i own this rental property with no success. I told him i wanted out and he came back and said that he would buy me out for $10,000. The equity we have in this property is around $100,000, $50,000 being my half. I declined and said i would buy him out for $12,000. He said he would only let me buy him out for $50,000. So I am stuck, i have no desire to buy him out and now live 90 miles away from this property so it makes it impossible to manage. I also know that i am not going to accept $10,000 from him. He intially set up the real estate agent to put it on the market about 9 months ago and lied to me saying the selling price of 299 was aggreed on by him and agent. That was not the case as i finally asked the realtor and she stated it was way over priced and would not sell in this market. WHen i moved out of my half i was told by him that i should keep my side vacant as to sell quicker. I demanded compensation for not renting out my half. He was really unwilling to give me anything but we did finally agree on $200 a month, i saw 3 months worth payments and havent seen anything in the last 6 months. So i have been shelling out $1200 a month with nothing in return for 9 months while he has been breaking even because his side is rented out. He is unwilling to buy me out and unwilling to lower the price at all because he has a "set" returne he wants out of this sale. The price we have it listed at wont sell. It has been on the market for 9 months with no offers. Living 1.5 hours away it is almost impossible to rent it out unless its someone i know. My hands are tied because i am stuck with this place costing me $1200 a month and basically causing me to go broke and he will not sell it in this market at market price and wont buy me out. Will this really drag in the courts for a long time and cost me a lot just to get my investment out?