[USER]

I just found out that my business partner of two years has been having an affair with one of our employees for the past year.

The employee is 25F and my business partner is 35M and married.

We are equal owners of the business and his mother gave us the start-up loan ($100k).

The business is successful and are generating positive cash flow. We have 5 other employees.

I’d like to take over 100% ownership of the business.

I don’t want to be in business with him any longer.

My business partner is taking leave next week while we sort out how to handle this.

The employee he is dating is still employed with us.

I am speaking to a lawyer this week but I’m seeking advice on my options, considerations, questions to ask.

Thank you for any insights!

[Nhien]

While people say otherwise, I totally understand this. My reputation, loyalty, integrity, honor and whatever I have will not be destroyed by this affair.

I would do the same.

I think you absolutely do the right thing.

People make mistakes.

However, he can cheat on his long life commitment he can cheat on you.

I will get out ASAP.

[Monique]

It’s an integrity thing. How people do one thing is how they do everything.

For the partner to be that sloppy and negligent there’s more coming.

It wasn’t just an affair, it was an affair with an employee.

For a YEAR. Good for you for cutting ties. That was so irresponsible .

I’d ask how the mother needs to be compensated. What is a good buy out strategy.

If the partner refused to sell, what’s the recourse?

What’s the best way to split the client roster (I don’t know what business you’re in).

If his mother gave the startup money, or a large chunk, he will feel entitled.

I’d be shocked if he’s willing to just sell you his portion of the business when it’s profitable.

So my thought is to ask the attorney how best to be on the defense so you can maximize benefits upon an exit.

Good luck.

[Zahri]

If the me two movement has taught us everything it is that under no circumstances can someone in a position of power be in relationship with their subordinate.

It is highly inappropriate and can lead to disastrous consequences, including accusations of sexual assault, sexual harassment, etc., even if the acts are consensual.

[Kelsey]

Gross of your (hopefully soon ex) business partner. Just get the best attorney you can imo.

I don’t think anyone can give you more detailed accurate advice because no one knows how your company governance is set up, etc.

[Stephanie]

Buy him out
Set up arrangements to repay his mother.
Start watching the employee.

If you can get her to sign that she won’t sue or any other document releasing the company of liability do so.

Honestly I would let her go once it blows over

[Charity]

Are you wanting to take full ownership in the case that his spouse finds out about the affair and files for divorce, which could compromise the business?

I do understand that an ethical issue can impact business, but was there an ethics clause in your operating agreement?

Did your Op agreement include how to proceed regarding buyouts and capital investments?

I guess I’m wondering what is the main driving force behind wanting to take ownership.

Of course it’s not a good look to date a subordinate as the owner, but you didn’t mention how the affair actually impacted the business.

Is there a personal connection between you and your partner?

You don’t have to answer these questions of course, just providing some perspective.

Hope it works out!

[Jennifer]

If mom gave you the start up loan… you will probably end up paying that back.

[Ashley]

I wouldn’t want to do business with a cheater neither. Can’t trust cheaters, they have no integrity or commitment, and they’ll bring the business down with them.

[Elizabeth]

He’s not a man to trust or be in business with, that I can tell you.

[Zachary]

As gross & negligent as it is unless you have a clause in your partnership about this I wouldn’t think you’d be able to force a buyout

[Sihing]

You’d be surprised how many people who are now heading up multi BILLION dollar businesses have done exactly this but managed to move on with their professional reputation intact, to even bigger and better things.

Right or wrong, it seems the world of big business doesn’t care too much about how you handle yourself in your personal relationships.

I certainly don’t agree with what this person has done, but I also don’t think you necessarily have grounds to push him out of the business especially if you are equal partners and his mother provided the start up capital.

Are you ready to walk away from this business, presumably your livelihood, over what’s basically a moral objection to how he runs his private life?

Or maybe split the business or even close it down?

[Dahiana]

Reminds me of a boss I had in his 50s engaged to a Philippina in her 30s.

He had requested k1 visa during covid and it got delayed.

He found ways to keep himself busy until then but it was poorly concealed.

Good for him that everyone else involved in the business was also sleeping w their employees.

I never felt more disgusting at a job.

[Jeremy]

You can get an appraisal and buy him out but if you buy TOO cheap and he gets divorced the ex wife can probably sue for the difference.

If it’s small enough of a difference the legal fees might not be worth it, or if you pay for the appraisal and make an offer and he doesn’t know you got one done more as a defense just in case.

Some real basic simple companies can just be bought for value of equipment, or a year’s revenue minus debt, or some other commonly used metric depending on the industry.

[Christopher]

Does your company have a written policy on having relations with employees?

If not there’s nothing you can do.

He hasn’t done anything illegal.

[Aria]

What does “I want 100% of the business we built together for myself” has to do with him cheating on his wife?

If your integrity is on the line, walk away with your share (half) and start over.

Otherwise this looks very much like an opportunistic business takeover and I’m not sure whose integrity to question more.

[Sophie]

It seems like if you don’t want to align with him anymore, you should be the one leaving the business and he can buy you out.

His mum was the one that got you both started, not anyone from your family.

To me it seems he has brought more to the business than yourself from the beginning.

Remember in the end a business is just there to make money.

[Justin]

While I understand you wanting to move on from your business partner, the part I struggle with is HIS MOM gave you all the money for the business.

Shouldn’t you be the one who has to leave the business?

[Stef]

First of all, in another situation I would say “mind your own business” but this is your business and integrity is important.

I don’t understand how he thinks dating a subordinate is okay, let alone when he is married.

It can cause soooooo many issues.

I would want to know if you have grounds for firing the female?

Will you need to pay back the 100k, or have you made the mom whole already?

How do you protect yourself from potential retaliation from him?

I hope this doesn’t happen but still.

How is he taking it?

How did you find out?

Do you know his wife personally?

[Author]

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