Divorce proofing a purchase through LLC / Buying in friend's name

[Sourabh Bora]

Hi BP Family

My friend's marriage has entered shaky grounds, and it might end up in a divorce in future. But he has come across this amazing rental property that he does not want to pass. He wants to transfer the money to me and wants me to buy the property all cash. After the divorce is over he wants to take possession of the house from me again. 

Some of the options we are considering:(in accordance with the BRRR method)

1) He transfers the money (about $60k) to me, I buy it all cash and after divoce, we do a refi and SOMEHOW (??) make him a partner   

2) I form an LLC, as me being the sole Member, use his money to buy the house in the LLC's name. And again, SOMEHOW (??) after divorce, and during refi, make him a partner.

 He is a very close friend of mine. With a well written contract and solid professional advice, I have no problem jumping in. 

 We will definitely take professional advice before jumping in. But I would love to know your views on it.

 My  concerns is, 

 1) Will it make the property divorce proof?

 2) What are the tax implications during these property transfer transactions ?

 The divorce is likely to be amicable and it is unlikely that the wife will come after him afterwards. But there's no harm in being extra careful.

 Thanks

 Sourabh

[Brian Ploszay]

You should not get involved in any way, in hiding assets from his wife.   Even though you are his friend, this is a potential liability for you.

Tell him to complete his divorce and there will be other deals out there.