What happens to the original partner's status in the partnership after selling their transferable interest?

When a partner sells their transferable interest, which typically consists of their share of the profits and losses, the status of that partner within the partnership itself does not automatically change. The selling partner remains a partner in the partnership unless otherwise agreed upon by the remaining partners.

The sale of a transferable interest allows the buyer to step into the financial rights of the selling partner, including receiving distributions, but it does not confer management rights or decision-making authority unless explicitly agreed. The selling partner continues to hold their position in the partnership, retaining both their obligations and any management or participation rights unless the partnership agreement dictates otherwise.

Thus, the notion that the selling partner retains their partnership status recognizes that the sale of financial interest alone does not sever the legal relationship with the partnership without further action or agreement from the remaining partners.