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Will personal and financial issues of a limited partner encumber a limited partnership?

1 Answers. Asked on Sep 22nd, 2016 on Business Law - Florida
More details to this question:
The individual has had two failed marriages. One of these caused financial issues in the past. He has had a couple judgements against him also. He would strictly be an investor. My concern is any former / future spouse or creditor come after the assets of the LP.
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Answered on Sep 22nd, 2016 at 3:22 PM

Assuming that the lp is operating property as a separate legal entity, rather than as an alter ego of its individual partners, the individual's creditors would generally not have the right to satisfy their claims against the individual from the assets of the partnership. HOWEVER, one of the individual's assets is his limited partnership interest, just like stock in a corporation.  His creditors may have the right to force a sale of his interest in the partnership, and use the proceeds to satisfy his debts to them.  If you're concerned, there may be ways to structure the deal to avoid this, but you would need a Florida attorney to advise you after getting a much clearer and fuller picture of the situation.

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