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My partner and close friend who I’ve worked with for 20 years has moved to Panama. We are 50/50 partners. However, he’s paying much less to nothing in taxes and his cost of living is much...

My partner and close friend who I’ve worked with for 20 years has moved to Panama. We are 50/50 partners. However, he’s paying much less to nothing in taxes and his cost of living is much less. My question: is there a precedent or protocol for fair payment in our situation?

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In a partnership, profits can be split in any way the partners desire, provided both partners agree on the division. Several approaches exist to ameliorate the condition you've described, where there is a good cause for an uneven split in profits.

First, you could renegotiate the ownership split. Instead of a 50/50 stake between partners, the partnership could be set-up on a 60/40 or 70/30 basis.

Second, you could declare the difference in personal expenses as a specific value, and take that out of future revenue off the top. In...

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