Tools to Exit a Bad Partnership

[Scott Trench]

Hi Everyone - Today Mindy and recorded an episode of the BiggerPockets Money Podcast. 

The scenario we unpacked was an individual who jointly owned a property with her sister and wanted to buy her sister out.

To arrive at the buyout, she came in thinking that she would:

- Compute an equity split based on cash actually contributed to the property. 

- Use a realtor to provide an opinion of value.

- Not charge closing costs for the buyout. 

I disagreed with this premise for numerous reasons, and offered up a new toolkit - the Shotgun clause - whereby she mentally prepare to either buy out her sister at an offered price, allow her sister to buy her out at the agreed upon price, or sell the property. 

I had a strong lean towards just selling the property, taking the proceeds, and using them to begin investing for financial freedom in true investments. 

However, I'm wondering if there are any other general tools, like a shotgun clause, that are valuable in exiting tricky partnership situations. Any frameworks and examples would be appreciated!