Question:

Mr. A & Mr. B are two independent professionals, Mr. A works on Sundays and Wednesdays and Mr. B works on Mondays and Tuesdays. May they make an agreement that each splits his income each day with the other?

When Mr. A gives half of his Sunday income to Mr. B. he is giving him a loan, which Mr. B will pay back on Monday by giving Mr. A half of his Monday income. In addition to this payment of the loan principle, Mr. B will also lend Mr. A half of his Tuesday income, to be paid back by Mr. A giving Mr. B half of his Wednesday income.
According to the first opinion in The Ramah YD 160 which holds that even requesting an equal loan in return for a loan is ribbis (halveini vealveka), this too would be a problem of ribbis, since Mr. A lends Mr. B half of his Sunday income, with the condition that Mr. B lend him half of his Wednesday income.
OR
They are now business partners, and they split the entire week’s income between them, and no loans take place, and no ribbis is involved.

Which is correct? Is this arrangement permitted or not?

Answer:

IT is considered a partnership, and t his is essentialy what they made up to do. To split the work and the profits.

 

Tags: Interest Ribis

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4 Responses to “May two professionals split all profits?”

  1. Rabbi wrote “this is essentially what they made up to do. To split the work and the profits”.

    Is this only id they made up to divide the workweek? what if they already were each working only half the week, and their agreement was just in regard to splitting their incomes, would this be a loan?

    • IF they want to have a partnership with such an agreement it is still a partnership, and not ribbis.

  2. What do you mean by “IF they want to have a partnership”? They did not discuss “having a partnership, only splitting their incomes. Is this automatically a partnership?

    • This swhat they made up to do and it is considered a partnership, not two loans.

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