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What is the legitimate Islamic ruling regarding the method of profit distribution when two partners separate, taking into consideration that one partner invested a portion of the company's funds in an Islamically forbidden activity, then returned the money along with its profits, and the other partner refused those profits?

1 min readAlso available in العربية

Partner "M" has a capital of two million, and profits are calculated based on this amount. As for Partner "A", his capital is only two million, while the third million is unlawful (haram) and must be disposed of by spending it on the interests of Muslims or distributing it to the poor and needy, along with donating its profits. His partner has no share in this unlawful million or its profits because he did not authorize its investment in that which is forbidden.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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