I have a client who owns half of a partnership. Her partner wanted to leave the company and my client paid her 30K for her portion of the business and has named her husband as her new partner. It seems to me her husband should have paid the former partner for her portion of the partnership... but, the client actually paid the former partner with money out of the company bank account. How should this payment be classified? She has it entered as an expense and I know that isn't right I appreciate any thoughts!

Thanks!