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Subject Author Date
Splitting Property Maya 12-20-2006
| `--> Re: Splitting Property Stuart A. Brons...01-18-2007
Posted by Gil Faver on December 23, 2006, 2:06 am
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> The situation is...
>
> My partner and I bought a residential property in the year
> 1990 for an amount of $120,000 + interests.taxes.insurances.
> The down payment of the house was for 20%---My partner put
> down 90%, and I for 10% of the down payment.
>
> We split each payment of about $1,000 each month until the
> present day.
>
> Now, we have decided to sell the property.
>
> Question is.... How should we go about splitting cash? Do
> we take into consideration the interestes.taxes.insurances
> that we paid over years on the property as well? Do we only
> look at the principle amount?

you might study this for some ideas, the most important of
which is to come to an agreement and reduce it to a writing
BEFORE you do stuff like this.
http://www.andysirkin.com/andysirkin/Resource/esm.pdf

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Posted by Maya on January 16, 2007, 7:40 pm
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 Herb - Correct. This is a residential property.

Another caveat that I would like to throw in here is that my
partner may end up keeping the property. In order words, she
will take over the remaining payments, while I will be
opting out of the partnership/deal and hopefully walk away
with my share. How should this be dealt with?

Thank you all for your insights and advices!

Maya.

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Posted by Stuart A. Bronstein on January 18, 2007, 4:01 am
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> Another caveat that I would like to throw in here is that my
> partner may end up keeping the property. In order words, she
> will take over the remaining payments, while I will be
> opting out of the partnership/deal and hopefully walk away
> with my share. How should this be dealt with?

The best way to deal with this is to treat it as if she made
a loan to you of half the down payment. You get half the
appreciated value, less interest on half the down payment
for the years since the property was purchased. She pays
you that amount, and that should do it.

Stu

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<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
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Posted by Maya on January 16, 2007, 7:40 pm
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> Forgive the question - why wasn't this discussed up front?
> The two methods I offer yield very different results.

We were very very naive.

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<< that may be imposed upon the taxpayer. >>
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Posted by rick++ on January 18, 2007, 4:01 am
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Phil Marti wrote:

> The way specified in the written agreement you had when you
> bought it. Don't ever again buy property with other than a
> legal spouse without such an agreement on the front end. It
> ensures that you won't be mad at each other over
> misunderstandings about the property when you sell.

Amen!
Besides describing partnerships with uneven participation,
the contract must cover what happens when things go wrong,
which may be more often than you think. Usenet postings and
courts are full of partnerships gone bad. Fortunately you
havent reached that stage.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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