Asset Protection Law
What protection is available through a family limited partnership?
Let me first clarify the fact that a family limited partnership is nothing more than a limited partnership. The distinguishing feature is the fact that the partners in the partnership tend to be exclusively family members.
The asset protection feature of a limited partnership derives from its charging order protection. Charging order protection limits a creditor to receive only those distributions from the partnership that a partner is entitled to.
That’s different from the ability to foreclose on the partnership interest and take the interest in its entirety away from the debtor.