Divorce looming: Transfer Home to LLC and rent it back?

[Karen L.]

My separated husband and I own a couple rental properties. Our rentals are in an LLC owned equally by both of us. Several years ago we borrowed against our own home to buy a property. The LLC in effect "owes" our home.

Now, we are facing divorce. We will keep the rentals and maintain our business partnership.

We face the decision on what to do with our home. One idea is to transfer it to the LLC and then I rent it back and continue living here.

Any thoughts? Legal? Tax ramifications?

Thanks for your help.