Partnering with Ex-wife

[Thomas James]

Seeking creative advice. Recently divorced. Have a home in Fl and TN. I hold mortgage on both. Both were community property. Wife quit deeded both homes to me, but I have  to pay her 50% of value of Fl home (approx 530k). I gave her 230k and agreed to give 300k from my 401k. We are still close and want to try to rebuild our relations and stay together unmarried for foreseeable future

She told me to pause on removing the funds from 401k for now and I’m hoping to not have to ever remove those for a home purchase for her, however she wants a home that would be hers in the event of my demise or if we couldn’t stay together. So right now she has 200k to put toward a home, but doesn’t work and couldn’t get a mortgage. She has a retirement income.

I am considering partnering with her on a home, that could be rented out to play off a mortgage of about 200k, but we would both have to be listed on the mortgage. She would likely be living with me still. This could be a good additional income stream later in retirement.

Am I putting myself at risk?

[Chris Seveney]

@Thomas James

Yes you are putting yourself at risk. I would honor your original agreement you have and if you want to maintain a friendship or personal relationship that’s fine but do not mix business and pleasure. That’s my advice