Future And Subsequently Acquired Interests
Topic Future_Interests FutureSubsequentlyAcquiredInterests
Assume that at the time the charging order is entered, the D/M owns a 20% interest in the entity, as one of five members. Later, another member withdraws and the D/M's interest increases to 25%. Is the additional 5% interest subject to the charging order?
It is suggested that § 503 be amended to provide that future interests, a/k/a after-acquired interests, be subject to the prior charging order. This is again consistent with other judgment enforcement liens which likewise pick up after-acquired property, i.e., an abstract of judgment will pick up and apply to a new parcel that the debtor takes title to in the county, such as from an inheritance.