Band Equipment Ownership: Who Gets What When a Member Leaves?

TL;DR: Without clear documentation, equipment disputes can tear bands apart when members leave. This guide covers how to determine who owns what gear, prevent costly arguments, and protect your band’s assets with proper agreements and records.

The Van Problem

Here’s a scenario that plays out more often than you’d think: Your bassist quits the band. He bought the van three years ago with his own money, but the band’s been splitting gas and insurance ever since. He wants to take the van. You need it for the tour starting in two weeks.

Who’s right?

Without documentation, this becomes a legal nightmare. Pink Floyd spent millions fighting over similar issues. Guns N’ Roses did the same. Your local band probably can’t afford that.

The core problem: Most bands treat equipment ownership like a handshake deal until someone leaves. Then nobody can agree on who bought what, when, or with whose money.

What you’ll learn:

How to determine equipment ownership (personal vs. band property)
What to document and when
How to handle the "band kitty" and shared purchases
What happens when someone leaves
How to prevent disputes before they start

Personal Gear vs. Band Assets: Know the Difference

Not all equipment is created equal. The gear you brought into the band and the PA system you bought together are fundamentally different things.

Personal Equipment

This is gear you owned before joining the band or bought with your own money for your own use. Examples:

Your guitar or bass that you brought to your first practice
The drum kit you’ve had since high school
Your pedalboard that you use for solo projects
The laptop and interface you record demos on

Rule of thumb: If you’d take it to another band tomorrow, it’s personal gear. You keep it when you leave, no questions asked.

Band Assets

These are items purchased with band funds for band use. Common examples:

PA system bought with gig earnings
Shared microphones and cables
Band van (if purchased with pooled money)
Rehearsal space equipment
Merch inventory

The twist: If the band paid you back for something you bought, it becomes a band asset. Your receipt doesn’t matter if the band reimbursed you from the shared account.

The Gray Zone

This is where most disputes happen:

You bought it, but the band uses it exclusively - Is your amp that lives at the rehearsal space and only gets used for band practice still yours?
Split payments - What if three members chipped in for a van, but one paid 50% and the others paid 25% each?
Band paid some, you paid some - You put down $500, the band paid the remaining $1,500 for a guitar rig
Gifts and loans - A member "lent" the band his PA system five years ago

Without written records, good luck proving what happened.

Why "We’ll Figure It Out Later" Destroys Bands

Most bands don’t plan for departures. You’re friends making music together. Nobody wants to think about the ugly scenario where someone quits or gets fired.

But here’s what actually happens:

Scenario 1: The Expensive Gear Dispute

Your rhythm guitarist bought a vintage tube amp for $3,000. The band reimbursed him $2,000 from the band account because "we all use it." He quits. Does he:

Take the amp because his name is on the receipt?
Leave it because the band paid for most of it?
Get bought out for $2,000 while keeping the amp?
Split the difference somehow?

Without documentation, everyone remembers the agreement differently. You end up with hurt feelings, broken friendships, and possibly a legal battle that costs more than the amp.

Scenario 2: The Van Situation

Your drummer bought a van titled in his name. The band pays insurance and maintenance from shared funds. Over three years, the band’s paid $12,000 into a vehicle the drummer "owns."

He leaves. You’ve got a tour booked. He says, "It’s my van, I’m taking it."

Is he right? Maybe. Did the band make loan payments, or were those rental fees? Who knows—you never wrote it down.

Scenario 3: The Band Kitty Problem

You’ve got $8,000 in the band account from gigs. A member leaves. Does she get:

Nothing (she forfeited it by leaving)?
An equal split (20% of $8,000 = $1,600)?
Her "share" based on contribution (she played more gigs)?
A buyout negotiated between everyone?

The answer depends on your band agreement. If you don’t have one, expect an argument.

What to Document (And When)

Prevention beats litigation every time. Here’s what you need to track from day one.

Equipment Inventory

Create a simple spreadsheet or document listing:

Item	Purchase Date	Purchased By	Cost	Paid With	Current Owner
PA System	Jan 2024	Band	$2,500	Band account	Band
Van	Mar 2023	Dave (drummer)	$8,000	Dave’s money	Dave
Guitar	Jun 2024	Sarah (lead)	$1,200	Sarah’s money	Sarah
Drum kit	Aug 2022	Dave (drummer)	$3,500	Dave’s money	Dave

Update this whenever you buy new gear. It takes five minutes. It could save you $5,000 in legal fees later.

Purchase Receipts

Keep digital copies of receipts for anything over $200. Use a shared folder (more on this later) where everyone can see:

Original receipt showing who paid
Proof of band reimbursement (if applicable)
Any agreements about ownership

The "Brought Into Band" List

When someone joins, document what gear they’re bringing that the band will use:

"Sarah is bringing her Fender Stratocaster ($1,200), Roland JC-120 amp ($800), and pedalboard ($400) for band use. These remain her personal property and will leave with her if she departs."

Get everyone to acknowledge this. A group text works. A signed document is better.

Shared Purchase Agreements

When buying something expensive together, write down:

Who’s contributing what percentage
Who owns what percentage
What happens if someone leaves (buyout terms, forced sale, etc.)

Example: "The band is purchasing a 2018 Ford Transit van for $15,000. Dave is paying $7,500 (50%), Jake is paying $3,750 (25%), Sarah is paying $3,750 (25%). Van is titled in Dave’s name. If Dave leaves, he must sell his share to remaining members at fair market value minus his ownership percentage. If any other member leaves, they forfeit their share to remaining members."

That might sound harsh, but it’s clear. Clear prevents fights.

The Band Agreement: Your Safety Net

Most of this article assumes you don’t have a formal band agreement. If you do, great—your equipment ownership terms should already be defined.

If you don’t, you need one. Not eventually. Now.

What a Band Agreement Should Cover

A proper band agreement includes:

Equipment ownership rules - Personal vs. shared gear definitions
Purchase procedures - How the band buys new equipment and who owns it
Departure terms - What happens to gear when someone leaves
Buyout calculations - How to value someone’s share of band assets
Band name rights - Who can use it after a split
Financial accounts - Who controls the money and how it’s distributed
Decision-making - How you vote on major purchases

You can find templates online or hire a music attorney to draft one. Expect to spend $200-$1,000 depending on complexity. That’s cheaper than one legal dispute.

The "We’re Just Starting Out" Excuse

Here’s the thing: you need a band agreement BEFORE you have assets worth fighting over, not after.

When you’re broke and playing dive bars, everyone’s chill about sharing the $300 PA system. When you’re making $10,000/month and have $50,000 in equipment, suddenly people care about percentages.

By then, it’s awkward to bring up an agreement. Do it now while nobody has skin in the game.

Common Equipment Scenarios (And How to Handle Them)

Situation 1: Member Leaves Voluntarily

What they keep:

Personal gear they brought or bought with their own money
Their share of band savings (per your agreement)

What they don’t keep:

Equipment purchased with band funds
Gear they were reimbursed for
Access to band name, social media, recordings (unless agreement says otherwise)

Gray area - the buyout: If they own a percentage of shared assets, you need to buy them out or sell the equipment and split proceeds. Valuation options:

Original purchase price divided by ownership percentage
Current fair market value (depreciated)
Forced sale and actual sale price split

Your band agreement should specify which method you use.

Situation 2: Member Gets Fired

This gets messy. A fired member might feel entitled to more because they didn’t choose to leave. Your agreement should address:

Do they still get their share of band assets? (Usually yes)
How long do they have to collect personal gear from rehearsal space?
Are buyout terms different than voluntary departure?

Without an agreement: This often ends in litigation. Fired members feel wronged and want compensation. Remaining members feel they shouldn’t reward bad behavior. Document everything.

Situation 3: Band Breaks Up Entirely

If everyone quits, you need to:

Divide personal gear - Everyone takes their own stuff
Liquidate band assets - Sell the PA, van, shared equipment
Split the proceeds - Based on ownership percentages in your agreement
Close financial accounts - Divide remaining funds

Alternative: One member buys out everyone else’s shares and keeps the band name/equipment.

Situation 4: The "Unofficial Loan" Problem

A member says, "Just use my PA until we can afford our own." Three years later, he wants to leave and take it.

Can he? Probably yes. It was never the band’s property.

How to fix this going forward: Put loans in writing. "Dave is lending the band his PA system for band use. It remains his property. The band will return it within 30 days of request."

Or convert it to a purchase: "Band is buying Dave’s PA for $1,500, payable in installments from gig earnings."

The Band Kitty: Who Owns the Money?

Equipment isn’t the only asset. That checking account with gig money and merch earnings is often worth more than the gear.

Default Rules (Without an Agreement)

If you formed a legal partnership (even accidentally, by operating as a band), partners generally share profits equally and have equal say in partnership assets. That means:

Each member owns an equal share of the band account
Decisions about spending require agreement (majority or unanimous, depending on state law)
When someone leaves, they’re entitled to their share

Better Approach: Define It

Your band agreement should specify:

When someone leaves voluntarily:

Do they get their percentage of current savings?
Or do they forfeit it to compensate remaining members for disruption?

When someone is fired:

Do they still get paid out?
Are there penalties for breach of agreement?

Example clause: "Band funds will be split equally among active members. If a member leaves voluntarily with 60+ days notice, they receive their equal share of funds as of departure date. If a member leaves with less than 60 days notice or is terminated for cause, they forfeit their share to remaining members."

Harsh? Maybe. But it prevents the drummer from quitting the day before a festival and demanding his $2,000 cut.

How Feedtracks Helps Document Everything

Here’s the practical problem: you need to track receipts, agreements, gear inventories, and ownership records somewhere everyone can access them.

Email chains get lost. Google Docs links break. Text messages disappear when someone changes phones.

This is where a shared drive system built for audio professionals comes in handy.

How to Use Feedtracks for Band Documentation

Create a "Band Business" folder:

Equipment inventory spreadsheet
Purchase receipts (photos/PDFs)
Band agreement (signed PDF)
Member contribution records

Why this works:

Everyone has access, nobody can claim they didn’t know
Files are versioned - you can see when things changed
Activity log shows who uploaded what and when
Works as legal evidence if disputes arise

Real scenario: Dave claims he never agreed to let the band keep the PA system when he left. You pull up the Feedtracks activity log showing he uploaded the signed equipment agreement in March 2023 and acknowledged it in the comments.

Case closed.

Blockchain Certificates for Valuable Gear

For high-value items (vintage guitars, custom gear over $5,000), Feedtracks can generate blockchain-backed certificates of ownership. This creates a permanent, tamper-proof record of:

Who owns the item
Purchase date and price
Any ownership transfers

If your guitarist owns a 1959 Les Paul worth $50,000 that the band uses, this proves it’s his personal property, not a band asset.

Create Your Equipment Agreement Today

You don’t need a lawyer to start documenting equipment ownership. Here’s what to do this week:

Step 1: Inventory Your Gear (30 minutes)

List every piece of equipment the band uses regularly. Include:

Item description
Approximate value
Who bought it
Whether it’s personal or band property

Step 2: Get Everyone to Agree (One practice session)

Go through the list together. Mark anything that’s unclear or disputed. Discuss until you have consensus.

Save the agreed-upon document where everyone can access it.

Step 3: Document Future Purchases (Ongoing)

Make it a rule: before buying anything over $200, document:

What you’re buying and why
Who’s paying (individual or band)
Who will own it

Take 5 minutes after the purchase to save the receipt and update your inventory.

Step 4: Draft a Simple Agreement (1-2 hours)

You can start with a basic template covering:

How equipment ownership is determined
What happens when someone leaves
How band funds are split
How major decisions are made

Get everyone to sign it. Update it as your situation changes (new members, major equipment purchases, etc.).

Common Mistakes That Lead to Disputes

Mistake #1: Assuming "Fair" Is Obvious

What seems fair to you might seem unfair to someone else. When your guitarist quits, does "fair" mean:

He gets cash for his share of the PA?
He takes his share of the PA (one speaker, half the mixer)?
He forfeits it because he quit?

Define "fair" in writing before emotions get involved.

Mistake #2: Verbal Agreements Only

"We all agreed Dave would get the van if he left" doesn’t hold up when Dave’s memory is different. Write it down. Date it. Everyone signs or acknowledges it.

Mistake #3: Mixing Personal and Band Money

If you pay for something with your credit card and the band reimburses you, that’s a band purchase, not a personal purchase. Keep the accounts separate to avoid confusion.

Get a band checking account. All gig money goes in, all band expenses come out. Clear separation from personal finances.

Mistake #4: No Depreciation Plan

A PA system worth $3,000 new might be worth $1,500 after three years of gigging. If someone leaves, do they get:

Original purchase price?
Current market value?
Replacement cost?

Decide this upfront.

Mistake #5: Ignoring Sweat Equity

Your drummer built all your custom road cases and does all the van maintenance. That’s worth something, but it’s not equipment ownership.

Consider creating a "contribution bonus" in your financial split to reward people who do extra work, rather than giving them ownership of gear they didn’t buy.

When to Hire a Music Attorney

You can handle basic documentation yourself. But consider hiring a lawyer if:

Your band has assets over $25,000
You’re signing record deals or publishing agreements
Someone wants to leave and you can’t agree on terms
You’re forming an LLC or corporation
Equipment disputes get heated and mediation isn’t working

Cost: Expect $200-$500/hour. A basic band agreement might take 2-4 hours to draft ($400-$2,000).

Is it worth it? If it prevents one legal dispute, absolutely. Litigation costs $5,000-$50,000+ and takes months or years.

Real-World Example: The Van Buyout

Let me walk you through how this works in practice.

The situation: A five-piece band bought a van for $20,000 three years ago. They split the cost equally ($4,000 each). Title is in the drummer’s name for insurance purposes. The drummer wants to leave.

Without an agreement: The drummer could legally drive off with the van since it’s titled to him. The band spent $16,000 on a van they don’t control. Lawsuit likely.

With an agreement: "Van ownership is shared equally among members. Title holder acts as trustee. If title holder leaves, they must transfer title to another member chosen by majority vote. Departing members receive fair market value of their ownership share, paid within 90 days."

Resolution:

Get van appraised - current value is $12,000 (depreciation)
Drummer’s share = 20% of $12,000 = $2,400
Band pays drummer $2,400 over 90 days
Drummer transfers title to new drummer
Everyone moves on

Cost to resolve: $2,400 + appraisal fee ($100-$200) Cost without agreement: Potentially $20,000 in legal fees, lost van, destroyed relationships

That $500 you spend on a band agreement looks pretty smart now.

Summary & Action Items

Band equipment ownership comes down to documentation. Know what you own, know what the band owns, and write it down before problems arise.

Key takeaways:

Personal gear stays personal unless you agree otherwise
Band-funded purchases belong to the band
"We’ll figure it out later" guarantees expensive disputes
Written agreements prevent memory disagreements
Track everything in a shared system everyone can access

Do this now:

Create an equipment inventory listing all gear and who owns it
Save purchase receipts to a shared folder (Feedtracks, Google Drive, etc.)
Draft a basic band agreement covering equipment, money, and departures
Get everyone to sign or digitally acknowledge the agreement
Update the inventory whenever you buy new gear
Review and update the agreement annually or when members change

Band breakups are hard enough emotionally. Don’t make them harder by fighting over who owns the bass amp. Document everything, agree on terms while everyone’s still friends, and focus on making music instead of making lawyers rich.

About the Author: The Feedtracks team helps musicians collaborate effectively with secure cloud storage, version control, and documentation tools designed for audio professionals.

Last Updated: November 2025