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Updated over 4 years ago on . Most recent reply

User Stats

46
Posts
5
Votes
Kristen Watts
  • Rental Property Investor
  • Saint Petersburg, FL
5
Votes |
46
Posts

Breakup - do I ask for a lump sum or try and get rights

Kristen Watts
  • Rental Property Investor
  • Saint Petersburg, FL
Posted

(PLEASE PUT IN THE RIGHT FORUM)

I just went through a breakup. We own 7 properties but they are all titled in my ex-partners name. However, I did most of the work. What to do now?

My attorney believes, based on the information I've provided him, that I'm entitled to half of the business as it's clear that was the intention (although titles are in her name). We have an LLC but it did not purchase the properties and titles were not changed so as not to trigger the "due on sale" clause. However, this was done with financing from a primary home I purchased, money we both received from a bad car accident and a refi of one rental purchased with the car crash money. We have almost equal money in the business. She paid the mortgage on the primary home but after receiving all of the income from the studio in the back of that home and rental income from a friend who rented a room for 5 years from us.

I did all of the bookkeeping, property analysis, tenant communication, on and on. In other words, I have much more sweat equity and over 10,000 emails to prove that. 

I took on bad debt, like her car, to keep her DTI low and credit high. There's no questioning what the plan was; however, there wasn't an operating agreement (stupid, I know). We were a couple and just didn't think it was important.

Question is this: is it better to ask for approximately $400k from her (which would require selling property) or continue to work with her until we're both dead, LOL. Emotionally, I can do that. Not sure if she can. We tried a sit down meeting with the attorney and she claimed I owned 1/3 of the business so that wasn't a good sign. However, that was awhile ago. Not sure where she stands now. 

TIA for any ideas, replies, etc. 

  • Kristen Watts
  • Loading replies...