Division of Capital Contributions in a Partnership in a Divorce Case
Division of Capital Contributions in a Partnership in a Divorce Case
If community property includes capital contribution in a partnership in the name of either spouse, and the spouses agree to transfer all or part of the capital contribution to the spouse who is not a partner, the community property shall be divided as follows.
Other partners’ agreement to transfer
If all the other partners agree to the transfer, the spouse who is not a partner shall obtain the legal status as a partner of such partnership according to law.
Other partners’ disagreement to transfer and exercise of the right of first refusal
If the other partners do not agree to the transfer, but they intend to purchase the shares by exercising the right of first refusal under the same terms, the proceeds from the transfer of the shares to the other partners may be divided as the community property of the spouses.
Other partners’ disagreement to transfer and waiver of the right of first refusal
If the other partners do not agree to the transfer and do not intend to purchase the shares by exercising the right of first refusal under the same terms, but they agree to the retirement of the spouse who is a partner from the partnership or reduction of his/her shares in the partnership, the shares will be settled, and the proceeds from the settlement may be divided as the community property of the spouses.
Other partners’ disagreement to transfer, waiver of the right of first refusal, and disagreement to retirement or reduction
If the other partners do not agree to the transfer, do not intend to purchase the shares by exercising the right of first refusal under the same terms, and do not agree to the retirement of the spouse who is a partner or reduction of his/her shares in the partnership, it shall be deemed that all the other partners agree to the transfer, and the spouse who is not a partner shall obtain the legal status as a partner of such partnership according to law.
Robert Zhang 
Steve Li 