# How is net worth calculated in partnerships.

3 Replies

Let's say that 2 partners own a property free and clear. The value of the home is \$100,000 each has a 50 percent claim to the property. I am assuming that each has a net worth of \$50,000 from that specific property? Or does each one claim the full \$100,000 as a part of their net worth.

Thank you!

Using your example each person would have \$50k from that specific property as it relates to their equity share.

Originally posted by @Mahmoud Y. Elhalawany :

Let's say that 2 partners own a property free and clear. The value of the home is \$100,000 each has a 50 percent claim to the property. I am assuming that each has a net worth of \$50,000 from that specific property? Or does each one claim the full \$100,000 as a part of their net worth.

Thank you!

Each gets 50% of the fair market value of the partnership’s asset.

In your case, 50% of 100k for each if there is not loan. If there is loan, you have to net the loan with the value.

Thanks guys!