Quote:
|
Originally Posted by Rekna
Ok lets look at a hypothetical situation. Let's say I decide to use my credit cards to build a new house, in doing so i build up $200,000 debt. But in the process of building the house I pay my kids to do some chores that involve the building the house. My children's income has gone way up but 2 months from now when the creditors knock on my door will the extra money my children made make any difference?
|
Yes. I think you have to factor in the value added by your children.
Assuming all other things equal
If you build a $200,000 house and you pay your children $100,000 but they added no value, what do you really have? A $200,000 house. So when the creditors come you can only sell the house for $200,000 and you get screwed (unless they give back the money)
On the otherhand.
If you build a $200, 000 house and you pay your children $100,000 and they added $200,000 in value. What do you have? Either a $200,000 and your cost was $100,000. Or a $400,000 house and your cost was $300,000. When the creditors come knocking, you sell for a $100,000 profit, and your kids made $100,000 - Brilliant! Brilliant!
