All Forum Posts by: Jennifer Hulse

Hi! Some of you may remember me. I'm getting a divorce and we have a beach house that's $150K underwater. We tried short sales, but that was out. He came up with an idea that we work as partners with an LLC. No! Now he wants me to "give" him the house so he can start his own LLC. A legal document would be written absolving me from any obligations.

Sounds great, since the house won't grow to its worth for a long time. But while I can remove my name from the deed, my name will still be on the mortgage.

Should I go for this?

Thanks to all. An accountant told me that if I did give him the house, he might issue a 1099 making me responsible for half the value of the house. So giving it to him is out thanks to your advice as well.

But here's another idea. We're going into our final mediation before we have to spend $100,000 going to court. Since he wants to do this partnership so much, couldn't I use that as leverage on alimony, leave any language out of the Settlement Agreement, and after the divorce say no we have to sell?

We've agreed to hire an accountant to help us figure out the exact tax breaks and we need to get an appraisal. I could jump after that.

The truth is I really wish a partnership could work, but I'm listening to you. I think I'd better bail and spend the $75K now.

I have another idea. What if I give him the house and walk away? Then he can set up the house as a business and take all the risk. He can renegotiate a lower interest rate and cross his fingers that the market for beach houses will rise. I get to keep my $75,000. Then I'm free and clear.

BTW, a property management company handles all the rentals and things that break, etc... If something big breaks, the owners have to deal with that. It's worked out well for us in the past.

I love the house and will miss it, but I'd rather have the money.

Good idea?

Thanks for the advice. My Ex loves this idea. But, I agree that we'd have to work together to make it work, and since he's a major control freak, I'm not sure it's a great idea unless the partnership is set up in iron with a clause to dissolve and sell.

It's a hard decision because my ex has to pay 2 mortgages (until the beach house is sold), and pay me for my half of the marital home (he's keeping it). The mortgages come to over $5,000 per month. But he'll have $350,000 a year to live on. Is this boo hoo for him?

I'm thinking that it's worth looking into the Trust idea, but perhaps it's better to take the loss and get on with my life. After all, I'm divorcing him largely because he's controlled my life to the extent that I've had to live like an ornament.

I'm going to talk to the guy who suggested this and get back. Meanwhile, if anyone has another idea, please weigh in. I'm just getting started on living again like the adult woman I was 22 years ago.

I'm divorcing my husband. We have a beach house in North Carolina that's under water to the tune of $150,000. A short sale is out of the question; we make too much money. A commercial broker and CPA friend has suggested that we create a partnership and keep the property until the market goes up. I've read articles here regarding the caveats in a "regular" partnership. Because I've been a stay at home mom, I'm on the short end of the financial stick, but have more time on my hands.

Our divorce has not been the most amicable, but we both agree that a partnership is probably the best way to avoid having to fork over $75,000 each if we sell it now. Dollar signs will beat out whatever hard feelings are left (I hope). I want to make sure I am protected financially and that I make the best decision for myself.

Thoughts?