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Divorce, asset allocation, tax implications, refinance required?
I know this question is best suited for a lawyer or tax professional but I just want to get general consensus.
My husband and I own a primary home and 7 rentals/investment properties. Some have mortgages on some of them in both of our names. We have a single-member LLC that is on a schedule E pass-through return. We are now wanting to have an amicable divorce. We are trying to figure out the best way to proceed. We are in Washington State a community property state. Is there a way we can change the LLC to a partnership and file a separate return for it and keep all of our properties and the mortgages as they are and just be partners? Or does anything with a mortgage have to be refinanced to remove one of us from the loan and then the properties have to be divided up or sold?