Partnership Assets Law and Legal Definition

Partnership assets are the assets of a partnership applicable to the payment of the partnership debts. In the administration of the affairs of a partnership, the rule is that joint estate goes first to joint creditors, and separate estate to separate creditors, with the exception that where there are no partnership assets, and there is no living solvent partner, partnership creditors may prove with the separate creditors of a partner in the settlement of his/her estate pari passu. Partnership creditors have no lien on partnership assets. [Thayer v. Humphrey, 91 Wis. 276, 298 (Wis. 1895)].