TELESEMINAR: Real Estate Partnership / LCC Divorces – A National Perspective
November 8, 2012
12:00 – 1:00 p.m.
1.00 MCLE hours
Recent years have taken a substantial toll on the real estate industry and real estate partnerships and LLCs. Partnerships formed to develop and sell or lease property have been pressured by falling market values, lenders’ refusal to refinance, and internal operational and ownership challenges. Faced with these challenges, the owners of these partnerships often decide to “divorce,” to separate assets, allocate debt, wind up operations and go their separate ways. For attorneys advising clients on these divorces, the challenges are manifold – framing the right structure to separate assets among the owners without losing value in the underlying project, working with reluctant lenders to allocate debt among the partners, and avoiding the most adverse tax consequences of the divorce. This program will provide you with a practical guide to formulating effective structures for accomplishing a real estate partnership divorce with a minimum of adverse tax consequences.
- Strategies for accomplishing a real estate partnership/LLC divorce
- Techniques for dissolving an entity and separating assets – dissolve & exchange, outright sales, “Russian Roulette,” redemptions, cross-purchases, and more
- Lender issues – range of plausible alternatives for modifying or reallocating debt, including refinance options
- Practical guidance on modifying existing partnership and operational agreements to accomplish a divorce
- Major tax issues to consider when formulating a real estate partnership divorce
Richard R. Goldberg, Ballard Spahr, LLP, Philadelphia
Brian J. O'Connor, Venable, LLP, Baltimore