Doing Joint Ventures while Seperated / In the middle of a Divorce
- Thread starter Brookd
- Start date
Presumably you and your wife will split assets. One such asset is your beneficial ownership of properties. Presumably your (former) wife does not want those, but the equivalent in cash and/or other consideration, such as your existing house. As such you need to get an agreement in principle with your wife that you can continue with JVs but she gets her fair share (presumably 50%) of any projects you do. The last thing you want is a court case where liens are filed on all your real estate with lengthy court battles over who gets what.
As such, get a proper valuation of all assets so that your (former) wife knows what she is entitled to. In my book I spend some time in talking about cleaning up your messes, so this certainly is one. The faster you can create clean solutions, for you, for your former wife, your kids (if any) and for your JV partners (both current and future) the better.
One such solution could be: wife gets the house you live in, valued at XXX equity plus cash, and you keep your JVs valued at YYY plus other assets (car ? cash ? ) such that each party is happy with their fair share. But I do understand that "fair" can get messy especially if some party thinks the other party is hiding something or undervaluing s.th. As such, get an appraisal on each property so that you know what "fair" looks like in the real world with real assets.
As such, get a proper valuation of all assets so that your (former) wife knows what she is entitled to. In my book I spend some time in talking about cleaning up your messes, so this certainly is one. The faster you can create clean solutions, for you, for your former wife, your kids (if any) and for your JV partners (both current and future) the better.
One such solution could be: wife gets the house you live in, valued at XXX equity plus cash, and you keep your JVs valued at YYY plus other assets (car ? cash ? ) such that each party is happy with their fair share. But I do understand that "fair" can get messy especially if some party thinks the other party is hiding something or undervaluing s.th. As such, get an appraisal on each property so that you know what "fair" looks like in the real world with real assets.
Thank Thomas 
In fact, "wife gets principle residence and I keep investment properties" is how things look to be panning out. We're amicable, and shes "sometimes" reasonable, so I think we'll be able to sort things out.
I think the agreement I want to get in place (until divorce is finalized) is that any new JV deals that I do that don't involve family assets ($$) she would not be part of and would agree to have no claim too, and those that do involve family assets ($$) then she would be entitled to 50% of the deal. Do you think thats reasonable?
In fact, "wife gets principle residence and I keep investment properties" is how things look to be panning out. We're amicable, and shes "sometimes" reasonable, so I think we'll be able to sort things out.
I think the agreement I want to get in place (until divorce is finalized) is that any new JV deals that I do that don't involve family assets ($$) she would not be part of and would agree to have no claim too, and those that do involve family assets ($$) then she would be entitled to 50% of the deal. Do you think thats reasonable?
[quote user=Brookd]Do you think thats reasonable? Sure, but I am not sure if she wants you to invest more $s .. but that is a function of $s available overall I guess [and undisclosed here]
I would get her to sign a piece of paper stating that she has no interest in the JV that you are doing (or planning to do) so that "she can walk the talk"