I own a small business. I borrowed from my small business. I recorded the loans with the IRS as loans to officers, was audited by the IRS and received a no change order, I completed the proper minutes of the corporation, and then made timely payments on the loans. The loans were made to remodel the marital home. Ex and I remodeled the house, ALL of the money borrowed was used to remodel the house. ALL bills sent in my name and ex's name. Remodel took two years, Market crashed in 2008, so over $700K in remodel did NOT add up to much in house appraisal...only about $50,000 in equity ONLY counting 1st and 2nd mortgages with banks. House was over priced at nearly $2M at the time of initial purchase. Ex plans to argue that she did NOT know about the loans or the remodel, had nothing to do with the remodel and just thought I was spending money on weekend projects as a weekend warrior. I have photos of her choosing various stones and paint colors...stilts were along side the house with construction trucks daily. The total remodel included a third level and additional bedroom for our son at $600K, so we went to the bank and BOTH signed for a $100K HELOC. She plans to further argue that the $700K was nothing but income to me, is NOT debt and I should give her more money because the equity in the house is small. I have EVERY single receipt for the remodel and all her signatures. Q: Will the court go for something like this and say, give her more money. We filed joint tax returns for the years of the remodel and she received an additional $500,000 cash during the marriage. Business lost traction and funds dried up so we split up. Please comment.
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