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New Zealand law explained for everyone

Partnership Law Act 2019

Nature of partnership - Determining whether partnership exists

13: Sharing gross returns

You could also call this:

“Splitting money or stuff you earn doesn't always mean you're partners”

When you share the total money or goods you get from something, this alone doesn’t mean you’re in a partnership. This is true even if you and others have a right to use or own the thing that’s making the money or goods.

For example, if you and your friend both sell lemonade and split the money you make, this doesn’t automatically mean you’re business partners. It doesn’t matter if you both own the lemonade stand together or if only one of you owns it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS205993.

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Business > Industry rules Money and consumer rights > Banking and loans
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12: Co-ownership of property, or

"Property shared with others doesn't always mean you're business partners"

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14: Effect of receiving share of profits, or

"Getting profits doesn't always mean you're a business partner"

Part 2 Nature of partnership
Determining whether partnership exists

13Sharing gross returns

  1. Sharing gross returns does not by itself create a partnership.

  2. This section applies whether or not the persons sharing the returns have a joint or common right or interest in a property from which, or from the use of which, the returns are derived.

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