Posted by John Merchant on November 05, 2007 at 09:46:09:
Lawyers are very conscious about who they’re representing so whichever lawyer it is will make it clear upfront, in all likelihood, that he can’t and won’t represent more than one of them, and likely that’ll be ing the person he’s talking to.
You’re right as to his being unable to represent either of those people in a subsequent divorce as that’d then present him with suing or being adverse to a former client.
It’s always been interesting to me that of all the professions, the lawyer seems to be the one most acutely conscious and aware of this situation and the one who works hard to avoid it.
I’ve had 2 or 3 people come into my office and tell me they wanted me to represent them all in some deal or other that looked like it could go sideways down the road. And I had to tell them I couldn’t do that and if one of them wanted me to represent him/her to make arrangements to come back alone.
And I did do a p’ship agreement for 2 partners and later they did break up and one wanted me to represent him…and I had to tell him nope, I couldn’t do it and sent him away.
I’ve found a silent partner to help acquire and repair a property. But my partner wants to know if there is an alternative to my name being on the title (as the owner) basically I think he wants some sort of insurance (since he is putting up a lot of money) so I wont “screw” him over. Is there anyway to automatically have the title transfered to him in case I default? If I could present a viable solution he’d be willing to work with me. Thanks in Advance!
Re: Silent partnering question - Posted by John Merchant
Posted by John Merchant on November 05, 2007 at 05:32:36:
A couple of ways to solve this:
I’ve seen a number of these p’ship deals done by putting the title in the silent p’s name and then YOU have to trust him, not vice versa.
Or it’d be simple to form an LLC, then put the RE in the name of that LLC. If you do this, you’ll want to have a well written LLC Subscription Agreement and Operating Agreement, spelling out both your rights and obligations…and survival rights if the other dies while the LLC still has the property.
Best to have a competent business lawyer do the LLC and its documents for you so as to protect both of you. Shop around to find a lawyer you both like and trust and whose fees are reasonable.
Remember that a lawyer isn’t going to be able to represent both of you if a spat or dispute happens, so you’d be better off if YOU hired him/her, as then he/she’d be YOUR lawyer and wouldn’t be suing you.
Posted by James (Ala) on November 05, 2007 at 06:46:26:
If a lawyer drafts a partnership agreement for two people and there is a divorce, I doubt he will represent either one–conflict. In fact, he may end up as a witness.
James (Ala)