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Utah Code § 16-18-503

Sharing of and right to distributions before dissolution

Renumbered and Amended by Chapter 93, 2026 General Session; Effective 10/1/2026

(1) Any distributions made by a partnership before the partnership's dissolution and winding up must be in equal shares among partners, except to the extent necessary to comply with a transfer effective under Section 16-18-603 or charging order in effect under Section 16-18-604.

(2) A person has a right to a distribution before the dissolution and winding up of a partnership only if the partnership decides to make an interim distribution.

(3)

(a) A person does not have a right to demand or receive a distribution from a partnership in any form other than money.

(b) Except as otherwise provided in Section 16-18-906, a partnership may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person's share of distributions.

(4)

(a) If a partner or transferee becomes entitled to receive a distribution, the partner or transferee has the status of, and is entitled to all remedies available to, a creditor of the partnership with respect to the distribution.

(b) However, the partnership's obligation to make a distribution is subject to offset for any amount owed to the partnership by the partner or a person dissociated as partner on whose account the distribution is made.

Official source: Utah State Legislature. Reproduced from public-domain Utah statutes; confirm against the official source for the current text. Not legal advice.