Partner's Interest in the Partnership

Question 1

What is a partner’s interest in a partnership?

Answer 1

Personal property, which includes:

+ financial interest in his share of the profits and losses, AND

+ the right to receive distributions.

Question 2

Can a partner transfer his interest?

Answer 2

Interest in the partnership is freely transferable, but the transferee has no right to:

+ participate in the management and control of the partnership, and

+ demand access to the partnership’s information, books, and records.

A transfer of a partner’s partnership interest does not automatically dissolve the partnership.