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Fiduciary Duty
One Party holding Money from the other party in Joint Ownership

One Party holding Money from the other party in Joint Ownership

Q: What are the signs of a partner hiding income?

Signs that a partner may be hiding income include discrepancies in financial statements, lack of transparency about revenue sources, and unexplained differences between reported income and actual business performance. If you suspect this, it's important to gather evidence and consult with a legal professional.

Q: Can I sue my partner for hiding business income?

Yes, you can potentially sue your partner for hiding business income if you can prove a breach of fiduciary duty or fraud. You must demonstrate that your partner had a duty to disclose the income, that they failed to do so, and that you suffered damages as a result. Consulting with an attorney is advisable.

Q: What should I do if I suspect my partner is committing fraud?

If you suspect your partner is committing fraud, document your findings and gather any relevant evidence. It's crucial to consult with a legal professional who can guide you on the appropriate steps, which may include pursuing legal action or dissolving the partnership.

Q: What are the consequences of breaching fiduciary duty?

Consequences of breaching fiduciary duty can include legal action for damages, potential loss of partnership rights, and even criminal charges in cases of fraud. The affected partner may seek compensation for losses incurred due to the breach.

Full question:

If there is a legal partnership created between 2 people on a business and one party is hiding income from partner in business 'ex; company brought in $6300 and payed other partner only $1100 and has not disclosed what company has truly brought in' Is there further action that can be taken?

Category: Fiduciary Duty
Date: 04/07/2025
State: New York

Answer:

A fiduciary is required to act in the highest good faith toward his or her principal and not seek to obtain any advantage over him or her by way of misrepresentation or concealment. In a partnership, partners owe a fiduciary duty to the partnership and to each other. To pursue a claim for breach of fiduciary duty, the elements of the cause of action are:

(1) existence of a relationship giving rise to a fiduciary duty;
(2) existence of a fiduciary duty;
(3) the breach of the
fiduciary duty;
(4) damages caused by the breach of fiduciary duty.

It may also be possible to have a claim for fraud or a theft type of charge, or to dissolve the partnership. I suggest contacting a local attorney who can review all the facts and documents involved.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is a fiduciary duty in a partnership?

A fiduciary duty in a partnership is a legal obligation that requires each partner to act in the best interests of the partnership and its partners. This includes being honest, transparent, and not concealing information, such as income or financial details. Breaching this duty can lead to legal claims, including breach of fiduciary duty or fraud.