RUPA does not interfere with a partner's exemption claim in nonpartnership property. As under the UPA, disputes over whether specific property belongs to the partner or to the firm will likely arise in the context of an exemption claim by a partner.

A partner's spouse, heirs, or next of kin are not entitled to allowances or other rights in partnership property. That continues the result under UPA Section 25(2)(e).

§1052.__Partner's transferable interest in partnership

The only transferable interest of a partner in the partnership is the partner's share of the profits and losses of the partnership, the allocations of income, gain, loss, deduction or credit or similar items related to such profits and losses and the partner's right to receive distributions.__The interest is personal property.

Comment

(This is Section 502 of the Uniform Partnership Act (1997).)

Section 502 continues the UPA Section 26 concept that a partner's only transferable interest in the partnership is the partner's share of profits and losses and right to receive distributions, that is, the partner's financial rights. The term "distribution" is defined in Section 101(3). Compare RULPA Section 101(10) ("partnership interest").

The partner's transferable interest is deemed to be personal property, regardless of the nature of the underlying partnership assets.

Under Section 503(b)(3), a transferee of a partner's transferable interest has standing to seek judicial dissolution of the partnership business.

A partner has other interests in the partnership that may not be transferred, such as the right to participate in the management of the business. Those rights are included in the broader concept of a "partner's interest in the partnership." See Section 101(9).