Sharing of and right to distributions before dissolution.
R.I. Gen. Laws § 7-12.1-405
in effect7-12.1-405. Sharing of and right to distributions before dissolution.
(a) Any distribution made by a partnership before its dissolution and winding up must
be in equal shares among partners, except to the extent necessary to comply with a
transfer effective under § 7-12.1-503 or charging order in effect under § 7-12.1-504.
(b) Subject to § 7-12.1-701, a person has a right to a distribution before the dissolution and winding up of
a partnership only if the partnership decides to make an interim distribution.
(c) A person does not have a right to demand or receive a distribution from a partnership
in any form other than money. Except as otherwise provided in § 7-12.1-806, a partnership may distribute an asset in kind only if each part of the asset is
fungible with each other part and each person receives a percentage of the asset equal
in value to the person’s share of distributions.
(d) If a partner or transferee becomes entitled to receive a distribution, the partner
or transferee has the status of, and is entitled to all remedies available to, a creditor
of the partnership with respect to the distribution. However, the partnership’s obligation
to make a distribution is subject to offset for any amount owed to the partnership
by the partner or a person dissociated as partner on whose account the distribution
is made.
P.L. 2022, ch. 123, § 2, effective January 1, 2023; P.L. 2022, ch. 124, § 2, effective
January 1, 2023.
Source: State of Rhode Island General Assembly (rilegislature.gov)URL: https://webserver.rilegislature.gov/Statutes/TITLE7/7-12.1/7-4/7-12.1-405.htmFetched: 10/20/2026