Texas Business Organizations Code 152.406 – Effect of Death or Divorce On Partnership Interest
(a) For purposes of this code:
(1) on the divorce of a partner, the partner’s spouse, to the extent of the spouse’s partnership interest, if any, is a transferee of the partnership interest;
(2) on the death of a partner:
(A) if the partnership interest of the deceased partner is subject to redemption under Subchapter H, the partner’s surviving spouse, if any, and an heir, devisee, personal representative, or other successor of the partner, to the extent of their respective right to the redemption price, are creditors of the partnership until the redemption price is paid; or
(B) if the partnership interest of the deceased partner is not subject to redemption under Subchapter H, the partner’s surviving spouse, if any, and an heir, devisee, personal representative, or other successor of the partner, to the extent of their respective partnership interest, are transferees of the partnership interest; and
(3) on the death of a partner’s spouse, an heir, devisee, personal representative, or other successor of the spouse, other than the partner, to the extent of their respective partnership interest, if any, is a transferee of the partnership interest.
(b) An event of the type described by § 152.501 occurring with respect to a partner’s spouse is not an event of withdrawal.
Terms Used In Texas Business Organizations Code 152.406
- Partner: means a limited partner or general partner. See Texas Business Organizations Code 1.002
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: means an entity governed as a partnership under Title 4. See Texas Business Organizations Code 1.002
- Partnership interest: means a partner's interest in a partnership. See Texas Business Organizations Code 1.002
(c) This chapter does not impair an agreement for the purchase or sale of a partnership interest at any time, including on the death or divorce of an owner of the partnership interest.