Florida Statute 620.1702
“Transfer of partner's transferable interest”
What it means
In a Florida limited partnership, transferring a partner's interest moves only the transferable interest: the distributions the partner would have received, and the net amount payable on dissolution. It does not dissociate the transferor, dissolve the partnership, or let the transferee manage, vote, or inspect records.
The transferor keeps every other partner right and all partner duties. And a transfer that violates a restriction in the partnership agreement is ineffective as to a person having notice of the restriction — the clause that makes family-partnership transfer limits stick.
- A transferee receives distributions and dissolution proceeds the transferor would have received — nothing more.
- No management participation and no information rights come with the transfer.
- The transfer does not by itself dissociate the partner or dissolve the partnership.
- A transfer violating the partnership agreement is ineffective against anyone with notice of the restriction.
How it plays out
Family limited partnerships lean on this section twice. In planning, it is why gifted limited interests are appraised at a discount — an interest that cannot vote, force a distribution, or freely sell is worth less than its share of the assets. In the probates we administer, it is why the estate of a limited partner holds economics rather than control: the general partner keeps managing, the personal representative collects what is distributed, and the agreement's transfer terms decide who may ultimately hold the interest.
Where this shows up
Pages on this site where § 620.1702 does real work:
Questions people ask
