Who is entitled to the post-marriage appreciation of limited partnership (LP) interests held before marriage?
An LP does not participate in the management of partnership affairs. If you have not substantively participated in the operation of the partnership after marriage, the appreciation is more likely to be characterized as natural appreciation (separate property). However, if you make additional capital contributions after marriage or substantively participate in decision-making, it may be recharacterized as investment income (marital property). Because a GP executes partnership affairs, its interests are more likely to be recognized as investment income.
Source article: Why Is Half of the Post-Marriage Appreciation of a Company Founded Before Marriage Divided at Divorce? — Rules and Judicial Approaches for Dividing Pre-Marital Equity’s Post-Marriage Appreciation
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