RHOBH Stars Dorit Kemsley and PK Could Lose $6 Million Home Over Tax Debt as LLC is Suspended, Plus PK Talks Growth Amid Messy Divorce

Dorit Kemsley and her estranged husband, Paul “PK” Kemsley, are reportedly in jeopardy of losing their Encino mansion.

Just weeks after the Real Housewives of Beverly Hills couple paid off a $300,000 notice of default after missing “more than four months” of payments to save the home from foreclosure, Dorit, 48, and PK, 56, are said to be “on the verge” of losing the property yet again due to an alleged tax debt.

According to a new report, Dorit and PK purchased their Encino home in 2019 for $6,475,000 under Dorit’s LLC, but both signed a promissory note to guarantee their mortgage payments. Years later, that LLC has been suspended by the Franchise Tax Board (FTB).

“With the entity being suspended, it is most likely a loan default,” attorney Ronald Richards revealed to The U.S. Sun on May 5. “For the FTB to suspend in the entity, they have not paid taxes or filed returns for a while … It is a bad symptom for the borrowers.”

“A lender can default for non-monetary violations like non-payment of property taxes or if the entity is suspended,” he continued. “There are many covenants to a loan besides making the payments on time … I think if the lender finds out about this, they will order her to cure it, and if she doesn’t, issue a new default.”

Although it has not been revealed how much Dorit and PK reportedly owe, Ronald said the lender could file a new notice of default against them. And, because Dorit’s LLC is suspended, it wouldn’t have a leg to stand on if faced with a lawsuit pertaining to the property.

In order for Dorit’s LLC to be taken out of suspension by the FTB, she and PK will have to get caught up on any back taxes they owe. If they don’t, their home will likely fall into foreclosure.

In 2020, just one year after moving into their Encino home, Dorit and PK, who share son Jagger, 11, and daughter Phoenix, 9, attempted to unload it for $9.5 million. Weeks later, they dropped the price to $7.9 million, but ultimately, they were unable to sell and took it off the market.

Amid their messy split, which appeared to get messier after he was caught kissing model Shana Wall, 50, PK seems to be staying positive, sharing a post about growth on Instagram on May 2, days after Dorit officially filed to end their marriage.

“57 years in, still becoming,” he captioned the post, which featured a photo of him on a phone call.

The Real Housewives of Beverly Hills is currently on hiatus.