§ 16204 Partnership Property Ownership Rules

Corporations Code·California

AI SummaryVerified

This law tells you when something belongs to a partnership and when it belongs to an individual partner, based on whose name is on the paperwork and whether partnership money was used.

Key Takeaways

•If the property is titled in the partnership’s name, it’s partnership property.
•If a partner’s name is on the title but the deed says it’s owned as a partner or mentions the partnership, it’s also partnership property.
•If partnership money is used to buy something, the law assumes it’s partnership property even if the title isn’t in the partnership’s name.
•If a partner’s name is on the title, the deed doesn’t say it’s for the partnership, and partnership money wasn’t used, the property is treated as the partner’s separate property.

Example

Two friends run a landscaping partnership. They buy a new mower using the partnership’s cash, but they put the title only in one friend's name and don’t write that it’s for the partnership.

Even though the mower’s title is in just one partner’s name, the law says it’s still partnership property because it was bought with partnership money.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 16204 Partnership Property Ownership Rules

(a) Property is partnership property if acquired in the name of either of the following: (1) The partnership. (2) 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. (b) Property is acquired in the name of the partnership by a transfer to either of the following: (1) The partnership in its name. (2) One or more partners in their capacity as partners in the partnership, if the name of the partnership is indicated in the instrument transferring title to the property. (c) Property is presumed to be partnership property if purchased with partnership assets, even if not acquired in the name of the partnership or of 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. (d) Property acquired in the name of one or more of the partners, without 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 and without use of partnership assets, is presumed to be separate property, even if used for partnership purposes. (Added by Stats. 1996, Ch. 1003, Sec. 2. Effective January 1, 1997.)

Last verified: January 10, 2026

Key Terms

partnership property separate property partnership assets

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 16204.

§ 16204 Partnership Property Ownership Rules

Corporations Code·California

AI SummaryVerified

§ 16204 Partnership Property Ownership Rules

This law tells you when something belongs to a partnership and when it belongs to an individual partner, based on whose name is on the paperwork and whether partnership money was used.

Key Takeaways

•If the property is titled in the partnership’s name, it’s partnership property.
•If a partner’s name is on the title but the deed says it’s owned as a partner or mentions the partnership, it’s also partnership property.
•If partnership money is used to buy something, the law assumes it’s partnership property even if the title isn’t in the partnership’s name.
•If a partner’s name is on the title, the deed doesn’t say it’s for the partnership, and partnership money wasn’t used, the property is treated as the partner’s separate property.

Example

Two friends run a landscaping partnership. They buy a new mower using the partnership’s cash, but they put the title only in one friend's name and don’t write that it’s for the partnership.

Even though the mower’s title is in just one partner’s name, the law says it’s still partnership property because it was bought with partnership money.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 16204 Partnership Property Ownership Rules

Last verified: January 10, 2026

Key Terms

partnership property separate property partnership assets

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 16204.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References