Family Forum / Marriage / Divorce / November 2004

The wife and I seem headed toward a, hopefully, collaborative divorce in the
very near future. Our main asset, our home, may be an item of contention.
Although it was purchased via a home equity loan secured by property that I
owned prior to our marriage, she wants the property solely to continue
residence for her and our only son (sole custody). This would be in lieu of
any child support, alimony, or other financial claim. I would be left with
the approximately $30,000. outstanding loan and no claim, right or
obligation to the property. While I agree that she has made substantial and
major contributions (financial and otherwise) to the property (loans) and
upkeep over the past 10 years, I contend that I have also contributed
financially and physically in the same. At the very least, I leveraged my
existing property to initially purchase out marital home. I think I should
have some vested right (and responsibility) in this property despite our
divorce.

As a possible solution I propose the formation of an LLP or LLC to maintain
joint ownership of the home following the divorce. Remember, this is
hopefully an amicable divorce and we will remain in very close contact
although we may not live together on a daily basis. A main reason for our
divorce is to limit risk and liability to each other.

I would like to find out if this can actually be done as part of our divorce
proceedings. What kind of residual liability might it contain? Has it been
done before? How would it be recognized by New York State courts? Is it
feasible and practical?

This is just a concept I propose to overcome a major obstacle. Please lend
me your feedback. Thank you.

Greg S.