In New Jersey, the Uniform Partnership Act defines “partnership property” as property in the name of:
- the partnership; or
- one or more partners with an indication in the instrument transferring title to the property of the person’s capacity as a partner or of the existence of a partnership but without an indication of the name of the partnership.
Additionally, property is presumed to be partnership property if it is purchased with partnership assets. For example, assume that a partnership has two partners and a bank account in its name. The money in that bank account would be considered partnership property. If one of the partners buys a house with the funds from the partnership bank account, the house would be considered partnership property. That would be true even if the partner took title of the house in his own name (without any indication in title of the partner’s capacity as a partner of the partnership or the existence of the partnership).
The analysis of what is considered partnership property can become complicated when there are numerous transactions that have taken place over a long period of time, using multiple bank accounts, and involving the commingling of partnership and personal assets.
Spector & Ehrenworth, P.C. has extensive experience analyzing and advising on issues relating to partnership property. If you are involved in a partnership dispute, attorneys at the firm would be happy to discuss with you the specifics of your case and advise you with respect to your legal options. To schedule an appointment to speak with a business attorney, call (973) 845-6525 or e-mail firstname.lastname@example.org.