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  • #16
    At this point these buildings are just being held for me in trust for me by my ex. I don't think becoming a business partner is a good idea. Plus he has never offered to put my name on the books. He clearly wants to keep control of it all.
    I believe that there are a number of ways you could handle this but the first question is has the business been valued?

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    • #17
      There was never any valuations or anything done. He is saying the whole value of his business is the 4 buildings he owns (one sold in the same month as our separation).
      I've been talking to another commercial realtor guy who just went through a separation and he said that the capital gains are money available to him to do what he wanted whether to buy hookers or buildings, so those gains are marital split. Whether I choose to get bought out now or get my name on title is asset splitting, it is not income to me. Geez, there's strong arguments out there. But this guy just went through his separation under the same circumstances, except that he didn't fight the law.
      I told my ex to forget spending his money on a mediator and to spend it on the forensic accountant summary and lets be done with it, but he's going the mediator route- we go on Monday. I'm sure he'll show up with a 100 pages of highlighted financials and maybe a PowerPoint presentation to back himself.
      If this mediator is a waste I'm ready to pay the forensic accountant myself.

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      • #18
        Originally posted by Karver View Post
        There was never any valuations or anything done. He is saying the whole value of his business is the 4 buildings he owns (one sold in the same month as our separation).
        I've been talking to another commercial realtor guy who just went through a separation and he said that the capital gains are money available to him to do what he wanted whether to buy hookers or buildings, so those gains are marital split. Whether I choose to get bought out now or get my name on title is asset splitting, it is not income to me. Geez, there's strong arguments out there. But this guy just went through his separation under the same circumstances, except that he didn't fight the law.
        I told my ex to forget spending his money on a mediator and to spend it on the forensic accountant summary and lets be done with it, but he's going the mediator route- we go on Monday. I'm sure he'll show up with a 100 pages of highlighted financials and maybe a PowerPoint presentation to back himself.
        If this mediator is a waste I'm ready to pay the forensic accountant myself.
        He can't just go the mediator route... You obviously agreed. It has to be mutual.

        I would demand a business valuation.

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        • #19
          Originally posted by Karver View Post
          So if your ex owned some buildings while you were married, you separated and he gave you half the market value of the buildings, would that money be considered your income for CS purposes?
          My ex brought up tonight that if he were to borrow money from the other partners in the buildings and pay me out of them would that be good? I said it sounded good to me. Then he said something about it being paid to my company as an income.
          There is likely capital gains to pay, assuming the buildings appreciated in value.

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          • #20
            If the business sold the capital gains are the businesses not his or hers. It all depends how the business is setup. It also depends on how he pays himself.

            Again this is Business law not Family law. Unfortunately when the two collide it's a big mess.

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            • #21
              Originally posted by dinkyface View Post
              The amount of interest on the sale proceeds would depend on how she ACTUALLY invested it, and it would factor into the NEXT year's CS. She would be free to buy and hold a bunch of growth stocks that pay NO income. Or put it into a GIC that pays 2% interest.
              Is there not a chance that an income is imputed if she chooses to generate no income from these funds ?

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              • #22
                Originally posted by plainNamedDad44 View Post
                Is there not a chance that an income is imputed if she chooses to generate no income from these funds ?
                Very possible.

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                • #23
                  Originally posted by Karver View Post
                  Of course those properties have also been receiving dividends and rental income, which I've never seen a penny of. Ugh. I've talked to regular accountants, but I guess they can be argued against. I guess I gotta push for this forensic accountant to get a final verdict.
                  who owns the property, if him, your SOL, sorry. I am in the same boat, and I build the property. I put in her name, so its hers right now, so she gets all rental income.

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                  • #24
                    Again this is Business law not Family law. Unfortunately when the two collide it's a big mess.
                    I would definitely agree with that statement but generally even if the business is just a series of assets with income generated from ownership, there should be a valuation.

                    Once its understand what the net value of the business actually is then you can try to come to a reasonable agreement on how to split. The best way to do this is probably to have your lawyer refer you to a good accountant/tax advisor who can give you some advice on the implications of the different choices. But the first step is to understand the asset.

                    Income property is a fairly standard type of business so I'm sure it wouldn't be hard for an accountant to give you some good advice here. You're kind of in the weeds until you go to one. It sounds like your lawyer should be pushing for proper disclosure though. Its unclear from your post whether you have that and you do need it.

                    But this guy just went through his separation under the same circumstances, except that he didn't fight the law.
                    There's more than one way to equalize this though so if I were you...first I'd understand the value of the asset...then I'd get some advice on the varying types of settlement offers you could make based on what's most beneficial to you from both an equalization and support basis. You may not need to go the route of hiring a forensic accountant if he discloses...just a certified one will do...and will be a lot cheaper. Forensic accountants are expensive and are generally used when there's a willful lack of disclosure.

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