I definitely see your point...and like wise you are seeing mine. It really is an almost no win situation.
Some of the pitfalls I see. Your H has stated the house is yours. That is fine, but has it legally been documented somewhere?
Let's say your sell house and pay off debt. Is there enough left, that if he changes his mind and says I want my half that you will still have enough for your plan? That is a possibility.
I may be wrong....but doesn't the government still view your company as a non-entity? In that it has corporate protections, but debt and taxes are still the responsibilities of the owners. My company is a LLC, but I have been informed that until I have another partner (beyond my wife) that the government still see's my company as being a sole proprietor. I am just brainstorming here.....trying to help you define the most protective route to proceed.
Does your state require corporate evaluation periodically? I know some states do that for tax purposes.
Of course this all goes back to Eric's lawyer advice in not paying off the debt. Have you consulted a lawyer on this? I think you are trying to take the least confrontational path...which I applaud. There is just so many legal "what if's" when dealing with issues like yours.
