S-Corp Dividend Use to Pay off Shareholder Loan

Hello. I own 49% of an S-Corp; I currently take no salary from this Corp as my primary source of income comes from my work in another company.

I am in the process of buying out the partner with 51%. We have framed this purchase that after the downpayment, I will pay him equal monthly payments using the income from the business to pay off this loan (he currently receives no salary from the business as well).

My initial thought was to take the money as a dividend and then pay him his monthly note payment. However, as I understand it now, this won't work as our dividend payments must be divided equally to our ownership stake. Alternately, if I take the money as a salary, the business cannot support paying me enough to cover the payroll taxes above the note payment we must make to the seller.

Any ideas on how this can work effectively?

Thank you.