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Texas Business Organizations Code

§ 152.406 — EFFECT OF DEATH OR DIVORCE ON PARTNERSHIP INTEREST

BO § 152.406Title 4. PARTNERSHIPS · Ch. 152. GENERAL PARTNERSHIPS · Art. F. TRANSFER OF PARTNERSHIP INTERESTS

Statute text

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(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.

Legislative history

Acts 2011, 82nd Leg., R.S., Ch. 139 (S.B. 748), Sec. 44, eff. September 1, 2011.

Source: Texas Business Organizations Code § 152.406 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.