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Updated over 6 years ago on . Most recent reply
Tricky situation- how do I cover my... assets?
Hello fellow BP'ers, I have a tricky situation on my hands, and I need some direction.
I have been flipping houses for about 15 years, and am now wanting to switch directions a bit and move into buying more rentals. I have one rental now, and do pretty well with it. Problem is, a divorce may be looming in the distance, and I need to ask what I can do to protect my assets. I already requested she sign a post-nuptial agreement giving her 100% of our family residence and everything in it, and me keeping the current rental plus any other future investments I may make (while not touching our regular family income). Well, that went over like a turd in a punchbowl. So I need to know what I can do now (if anything) to protect myself and my future investments. I have about 3 deals I am ready to pull the trigger on, all being funded with cash from outside the family income (it's cash from flips that I have tried, sometimes unsuccessfully, to keep separate), or from private money. But living in WA state, and it being a community property state, what can I do? I have been contemplating forming a sole-proprietor LLC, but would that even do anything? I know there has to be a way, and who better to ask than the experts here? I want to pull the trigger on these deals, but am very reluctant to with the current situation. The last thing I need is for me to do these deals, and two-three years down the road get screwed out of them. Not saying it is a for-sure thing, but I just want to proceed as protected as possible. I would hate to have to pass on these deals.
Any suggestions would be greatly appreciated!
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@Account Closed you are either all in or all out. If you are not willing to share half of everything with her then divorce now and find someone who you are willing to do that with. Both you and your wife deserve it. That is what marriage is, a partnership. Everything is subject to division regardless of who earned it. You wouldn't do a partnership on an investment property with someone then try to cheat them out of all of the money would you? Your wife is your partner. Get divorced or be ready to pay her one half share when you cash out of your partnership.