Firstly, we strongly recommend anyone going into business with a partner to draw up an agreement when the business commences. The agreement should be as detailed as possible in order to provide clarity for both parties and possibly prevent too many future business related disagreements.
However, failing the existence of a valid agreement or an agreement that deals specifically with the issues you are facing, you may need to consider the possibility of you and your business partner parting ways if you are unable to resolve the issue agreeably.
There are a number of ways this can be achieved, depending on the complexity of the business. Potential options include either partner buying the business from the other or splitting the business between the partners. Either option has many issues to be considered, including stamp duty, income tax, capital gains tax, restraint of trade issues, deferred income tax, valuation, and many other issues.
This is very complex area that is entirely dependent on your individual circumstances. Make an appointment with the McKern team to discuss your options.