Property Ownership in Quebec

Property Ownership in Quebec Partnerships: Who Really Owns the Property? As opposed to U.S. partnership law, which holds property brought into or acquired by the partnership becomes property of the partnership; in Quebec, you can bring the property into a partnership and have it considered separate from other partnership property (Kubasek, M., Herron, Dhooge, & Barkacs, 2013). Under the Civil Code of Quebec (CCQ), in the area of contributing property to the partnership; made by the transfer of the owner’s rights, the contribution of the property establishes a distinct separate level of partnership property within the partnership (Boodman, 2010). When a partner brings in property to a partnership; the property, is separate from other partnership property as opposed to the property becoming co-owned among the members of the partnership. In the case of a bankruptcy, while the partners are still liable for the debts of the partnership; the partnership cannot liquidate property brought into the partnership by a partner to pay the debts of a partnership. Additionally, the creditors of a partner will not be able leverage the property brought into a partnership in the case of a charging order, unless that the property was brought into the partnership by the partner who sold them their partnership interest. The Quebec law is distinctly different from U.S partnership law as it allows a partner to bring in assets; for the benefit of the partnership, while still keeping them separate from the partnership. This protects the assets the partner; brought in to the partnership, from loss if the partnership goes bankrupt. The intent of the law is that a partner should not necessarily become personally bankrupt just because the partnership became bankrupt.

References
Boodman, M. (2010, December 21). Who Owns a Quebec Partnership? Retrieved August 2013, 2013, from Corporate/Commercial Law - Canade: