Positioning Real Estate Assets in the Middle of Divorce
Ok Guys,
I've possibly got a brain twister for ya and need some ideas on what I can do to help myself and my brother out.
Most of my property is owned by me alone. My brother is presently in a divorce. We own a house together, equil shares, between him, my mom and I. He did not pre-plan a potential divorce in any way. During his marriage, my mom's company gave a loan of about 45 to me and him to buy the house, rehab it and set it up in an LLC.
Now, in his divorce, the soon to be X is going after our rental property. About a week ago we got a business line of credit on the house for 50K of which only a couple thousand is actually on the line which was closing costs. We never recorded anything at the courthouse for that 45K that was loaned by my mom's other corporation.
My brother is now having to give her lawyer a deed and other information so the judge can determine the equity in the property. A recent valuation of the property shows it to be worth 77K.
Anyone have any ideas on how we can protect this asset? Technically it has a loan against it of 45K that was unrecorded, and a business line of credit loan on it for 50K which only has a couple thousand on it spent.
And will the judge think there is some funny stuff going on if we went down and recorded another lien on it right now for that one that we never recorded. We would be able to prove that the money was transferred from her company to this houses llc.