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avalpert t1_j2a678q wrote

The real answer is it depends on the nature of the arrangement between A and B - was A covering prepaid expenses in lieu of B covering labor (for example),there are an infinite number of possibilities here, hopefully they have there shared understanding down in writing.

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HurryPrudent6709 OP t1_j2a6phw wrote

Let’s say it was the sale of a home , 20k was paid to a contractor by A. Homes sells for 100k

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avalpert t1_j2a86eo wrote

It would still come down to the nature of the arrangement between A and B - is the $20k a straight contribution of capital to the enterprise that is expected to be repaid, is it a form of purchasing their 50% share in the profits (with B doing so through other means), etc.

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HurryPrudent6709 OP t1_j2a712s wrote

The other scenario is let’s say A wants to be paid 5k for their time in prepping : cleaning home prior to sale. B agrees

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avalpert t1_j2a8a72 wrote

If A&B agrees, the $5k should be paid by the enterprise before splitting the remaining profit (just as they would for paying any other service provider).

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