My partner and I decided to split up a partnership (things just weren't working out between us). We have some apps on the market that are still generating revenue, we decided the best thing to do was to do our own companies and split the revenue coming in from our old company.
What would be the best way to do this? Should I write a check to his new company and my new company? Should we take out the revenue as draws and then put it back into our own company as capital contribution?
Being in the US I highly recommend you speak to a CPA. There could be so many tax implications it's not funny. I guess you could convert the partnership to a corp and then both take shares in it. Writing checks I don't think will be an option. Declaring profit, taking revenue out to your own names, then doing whatever with that would again depend on your tax status / situation.
Extreme advice... if the money is enough... leave the US... become a PT (Permanent Traveller), buy an island and retire.
I believe that continuing joint ownership of the old company will prove to be a mistake. To maintain the revenue stream will need a continued investment of resources. The decisions about dollars, service, support and upgrades between you and your former partner are just want you want to move on from.
You and your partner need to agree upon the value of the assets of the company. And then basically divide them in half and you respective new entities need to acquire those assets. Assuming an fairly equal split the amount you pay and the amount you receive from your current company as a owner should be about the same.
A CPA and/or lawyer will help you finesse the mechanics for the minimal tax implication for the asset transfers.