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New property 50% invested & 0% ( 2 parties )

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Brendan | 19 Apr 2017, 04:30 AM Agree 0
Coles notes: ( please assist )
Property purchased for 600,000
Partner #1 invests 300,000, partner #2 invests zero.
Making up a pre-nup ( sort of - no marriage )
If partnership fails, does #1 get 300,000 back OR 50% of the future total of the property? Then split remaining 50/50?
Or does partner #1 get 300,000 back, then split remaining.
Ie: property 5 years later worth 1,000,000 , does he get 50% off the bat, ( 500,000 ) then split the rest?

Please help
  • Brendan | 19 Apr 2017, 10:53 AM Agree 0
    In addition to above:

    $300,000 down, mortgage for $350,000 - today
    Example: 10 years later - relationship fails, property now valued @ $1 M.

    Does partner #1 get 50% of TOTAL 1st, then pay outstanding mortgage ( ex: $300,000 ) then split remaining funds 50/50?

    - $1,000,000 minus $500,000 ( 50% ) to #1
    - Pay outstanding mortgage ( $300,000 )
    - Split remaining $200,000 evenly

    OR

    - Pay outstanding mortgage 1st ( $300,000 )
    - Then retrieve 50% of remaining monies = $700,000 ( $350,000 )
    - Split the rest evenly between both parties ( $175,000 each )

    Scenario #1 - Partner #1 gets $600,00 and #2 gets $100,000

    Scenario #2 - Partner #1 gets $475,000 and #2 gets $175,000

    Hope y'all can follow the bouncing ball.

    Please help
  • Brendan | 19 Apr 2017, 05:03 PM Agree 0
    Someone???
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