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WHAT CAN I DO IF MY PARTNER REFUSES TO PAY ME MY SHARE OF PARTNERSHIP PROFITS?

The answer to this question, under California law, is dependent upon a few important facts.  For example, whether or not the partnership is a general partnership or a limited partnership is an important distinction.  If there is a written partnership agreement, the terms of that agreement might determine the remedies available to a partner deprived of partnership profits.  Similarly, if the partnership is based on an oral agreement between partners, the terms of that oral agreement may also dictate the answer to this question.

As a general rule in California, however, in the absence of a formal agreement between people in business together, it is presumed that they have a general partnership.  Likewise, if the partners have not expressly agreed how to distribute profits, it is presumed that they are going to be distributing profits equally.

If a partner is stealing partnership profits, or depriving you of partnership profits that you are rightfully entitled to, and any efforts to utilize reason and logic in trying to get your partner to correct their conduct have failed, your remedy would be to file a lawsuit against your partner for breach of fiduciary duties, breach of contract, and possibly other claims depending upon the circumstances in your case.

I regularly represent clients in lawsuits involving partnership disputes. If you have questions, or need representation by a California business attorney involving a dispute with your partner, please feel free to contact me to arrange for a consultation at (510) 465-0025.

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