Lawyers.com > Discuss Your Legal Issue > Ask a Lawyer > Business Law > Will personal and financial issues of a limited partner encumber a limited partnership?

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.
Answers Showing 1 out of 1
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.

Report Abuse
Business Law
Beginning on the day a new business is launched, it will encounter a host of legal issues. From selecting the optimal business structure to negotiating contracts, from ensuring that the company's name doesn't infringe on another business's intellectual property to hiring new employers--almost everything that small business owners do touches on some aspect of business law. As a company owner or manager, your focus should be on successfully running and building a business. A law firm that focuses on business law will have attorneys who have a broad cross-section of experience on the myriad legal issues that affect all businesses, large and small.
Have an Business Law Question?
It’s Free & Easy.
Ask a Lawyer
Top Contributing Lawyers
Mark Tischhauser, Esq.

Attorney - Florida

367 Answers, 21 Legal Topics

Patrick Johnson

Attorney - Tennessee

234 Answers, 41 Legal Topics

Michael D. Siegel

Attorney - New York

218 Answers, 27 Legal Topics

Ms. Maryellen Sullivan, Esq.

Attorney - Maine

158 Answers, 5 Legal Topics

Michael E. Fiffik

Attorney - Pennsylvania

130 Answers, 21 Legal Topics

Lori Nevias

Attorney - New York

128 Answers, 37 Legal Topics

Kirk J. Angel

Attorney - North Carolina

82 Answers, 4 Legal Topics

Business Law Local Law Firms  
In United States change location
×
Please select state Update
Do It Yourself Legal Forms
Go

Popular Forums