Goodmom
Pooh-Bah
Reged: 06/17/07
Posts: 2015
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[quote] For all we know, the business is a million dollars underwater, and even with the $4K/month yaht payment, the boat might be upside also. Accurate info is needed on all those facets to make any kind of assumptions. [/quote]
Yes, the business could be that upside down.
Doesn't change the fact that if the yacht is considered marital and the business is making the $4K payment, that is going to be considered income to the the OP's stbx, along with all of the other personal expenses that she has stated is being paid out of the business.
If the yacht is considered business property, then the $4K will not be added to the stbx's income, just the personal expenses being paid out of the business. And the negative equity in the yacht isn't a factor at all (which I don't think it will be whether it's considered a marital asset or not unless it is actually going to be sold).
And given that the business started before the marriage, any negative equity in the business is irrelevant when it comes to asset division as it is not a joint asset.
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Shanti
newbie
Reged: 10/29/11
Posts: 36
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This is what is written in the agreement that he wants me to sign:
Interests to be held jointly: The parties agree that the 2005 Motoryacht shall be held jointly by the parties until further court order or written agreement of the parties. The debt associated with the Motoryacht is more than the fair market value for he Motoryacht. Husband shall continue to make the payments on the Motoryacht and enjoy the exclusive use and possession of the Motoryacht and pay all slip fees associated with the Motoryacht, until such time that the debt can be renegotiated with the bank resulting in minimal payment from the parties joint and/or community resources. The court shall continue to retain jurisdiction over this asset and associated debt, which the parties are unable to resolve due to the amount that remains owing above and beyond the fair market value of the property.
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Renny
addict
Reged: 09/24/11
Posts: 479
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I wouldn't sign it. The net effect is to make you jointly liable for the debt on the yacht. I would use the cause to make it clear that the yacht and associated debt are not marital property and that he will hold you harmless from any claim related to it in case he files for bankruptcy.
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Shanti
newbie
Reged: 10/29/11
Posts: 36
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I sent my stbx an e-mail asking how he pays for the boat. He answered:
"The company pays by electronic check for the boat and I use a company credit card to pay the slip fees."
And in response to the question about the ownership of the business. For all intentions and purposes he owns the business. However the founder of the business is his 82 years old father who works there full time and take home a check iqual to whatever my stbx takes home. He refuses to retire or to sign the business over to my husband. So I don't really know who own that business.
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DedicatedDad
veteran
Reged: 09/05/04
Posts: 1318
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Whose name is the boat in?
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Shanti
newbie
Reged: 10/29/11
Posts: 36
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It is on stbx's name
The bank wouldn't give a loan on the name of a business but only on the name of a person,
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DedicatedDad
veteran
Reged: 09/05/04
Posts: 1318
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You've got so many complications here. What does your attorney say?
The business is upside down so there's negative value.
The boat is upside down so there's negative value.
The $4K payment comes from a business that your husband is probably only 1/2 owner to.
The boat is in his name rather than the business.
Lots of complications.....I've found that logic often doesn't apply in family law....let us know what your attorney says....make sure he/she has all the above facts. Any one of them could make a tremendous difference in the outcome.
One question though....how does one get a $500,000 loan on a $47K salary, since you said the business isn't actually part of the deal? Are there other assets used as collateral?
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Shanti
newbie
Reged: 10/29/11
Posts: 36
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He demonstrate to the bank that the business would pay for the boat and the business was making enough money to do that. So even know the boat is on his name the bank loaned the money because the business could afford it.
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Shanti
newbie
Reged: 10/29/11
Posts: 36
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To clarify I little more he claims that the Yacht is a second office in downtown San Diego. In case the IRS goes after him he has this explanation for the reason the business pays for the boat.
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Goodmom
Pooh-Bah
Reged: 06/17/07
Posts: 2015
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[quote]To clarify I little more he claims that the Yacht is a second office in downtown San Diego. In case the IRS goes after him he has this explanation for the reason the business pays for the boat. [/quote]
Then he can't claim the debt is a marital debt. And since that is the case, you can't add the $4K a month to his income. Just the other personal expenses that the business is paying.
If you don't have an attorney, you need one. Your stbx is trying to pull a fast one.
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