This year the Florida legislature passed a new limited partnership act known as the Florida Revised Uniform Limited Partnership Act of 2005, as amended. The new law increases protection of limited partnership interest against judgment creditors. Until this point there had been some question whether the charging lien against distributions to a partner was the exclusive remedy available to a creditor, or whether a creditor could also foreclose the debtor’s partnership interest or ask the court for other collection remedies. Section 620.1703 of the new partnership law states that the charging lien is the exclusive remedy of a judgment creditor of a partner. As stated previously on this blog, the term “partner” is defined by the new law to cover both a limited partner and a general partner.
The new law also states that a partnership interest is personal property and that this property may be protected by other Florida exemptions such as tenants by entireties ownership by married owners. The new law also protects limited partners from liability to creditors of the partnership if the limited partner participates in the management or control of the limited partnership.