Legal Question in Real Estate Law in Washington

Limited Partnership Dissolution

I had a limited partnership with my family members to own a condominium (I was general partner and only put in $500). My ex-wife and I lived in the condo for 3 years. We sold it and moved the money over as a down payment on a house. Ex-wife's father was attorney in Washington State and acted as attorney for the LP. A year after the move, divorce commences, and LP attorney says LP is no longer in effect (as the stated purpose was to own the condo - though no explicit expiration date was mentioned in the paperwork) and so the equity would be split between my x-wife and I. I now believe I have been mislead by attonrey. After researching RCW, I now believe the LP attorney did not advise properly on how to dissolve the LP and that the Limited Partners still remain creditors, as they received nothing prior to dissolution nor made any kind of gift at the time. Based on what I've described, is my concern valid? Note: LP was filed in Washington State & all limited partners lived there. House was in Utah.


Asked on 1/10/08, 2:14 pm

1 Answer from Attorneys
James Vasquez In Pacta, PLLC

Re: Limited Partnership Dissolution

By definition a limited partnership is dissolved when the purpose for it no longer exists. In your case, when the condo was sold, the limited partnership, unless the partnership agreement states otherwise, was dissolved. The partners (you and your ex-wife) did recieve a benefit that being the equity from the condo which you then rolled over into a down payment on a new home. Unfortunately, your ex-wife's father is correct, since you and your ex-wife owned the condo as partners (presumably equal), you are each entitled to 1/2 of the profits therefrom. However, your issue is complicated by the fact that the home is in Utah, and depending on where the dissolution (divorce) was filed how the equity in the home is divided may differ.

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Answered on 1/10/08, 3:07 pm


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