Shared salon

Sarah987

6years ago me and my friend got our own salon together, 
The salon is used purely for us to do hair we do not sell any products , the salon does not make any money  . We have always had our own clients so the money we make is ours and then we split the rent etc . 

We do not have any legal paperwork or contracts . Where do u stand if she leaves will I have to pay her out ? 

sammyjammy

Surely the rental agreement is in both your names?  What do you mean pay her out?

lincroft1710

If the salon does not make any money, why have you continued in business for 6 years?


If there is no contract between you apart from a verbal agreement to split the rent, then you have to look at the rental agreement re liability. If it says you are both jointly and severally liable, then if your friend ceases to use the salon and refuses to pay her share of the rent, then the landlord can legitimately pursue you for her share of the rent as well as your own.
 

DullGreyGuy

Sarah987 said:

6years ago me and my friend got our own salon together, 
The salon is used purely for us to do hair we do not sell any products , the salon does not make any money  . We have always had our own clients so the money we make is ours and then we split the rent etc . 

We do not have any legal paperwork or contracts . Where do u stand if she leaves will I have to pay her out ? 

How did you "get" the salon? You bought it? Have a long term lease? Have a short term rental agreement?

Whose name is on the contract if it's a lease/rental? If it's both does it state that you are jointly & severely liable? 

What would you be "paying her out" for? Is she quitting the hairdressing game and offering you her client list? Is she renting a chair elsewhere and taking her clients with her?

lincroft1710 said:

If the salon does not make any money, why have you continued in business for 6 years?

I think the OP means each just have their own clients and so revenues just go to one or the other, there is no chair rent, product sales or other things that go into a central pot (the salon itself) to then be subdivided between the two.