Understanding the Business Transaction To form a partnership, each partner contributes personal assets in exchange for a share of ownership in the partnership. Net income or net loss is distributed among the partners distribution of income and losses, then income and losses are divided equally among the partners. When a partner dies or retires, an individual partner's share of the partnership's assets is If the partnership agreement does not provide for Any property owned by the part nership is , wren a partnership is dissolved, . , Partners may contribute either cash or noncash assets to form a partnership. Noncash assets contributed are recorded at