I have worked with a business partner for 3 years. He lent me money over the past 3 years as our production was not what he promised he would be. In his own words "he never expected me to pay it back". I now am leaving and he wants me to pay back $29,000. He says he has a piece of paper on which I signed that I owe him the money. My question is "Do I owe him this money? What about his broken verbal commitments to me? I would never have "borrowed" money if he did what he promised. How do I protect myself?

Did you sign a paper saying you would pay him back?

First what is the business relationship, is this a real partner, do you have a partnership agreement, is the business a legal partnership, did you do business taxes as a partnership ?

Why are you leaving, who is taking over your ownership of the business

I do not have any signed documents. We said we were partners however we really were sole proprietors that marketed under the same name.

I am leaving because this arrangement did not work out. I have been offered a new job and am going to take it because of the stability it would bring. We did not have a partnership agreement. We both filed our own schedule c tax returns. He will keep the business.