I agree with the sentiment here, you spent a year and you learnt a lot out of it. Your co-founder would probably have to put in more money (maybe for a few more

I agree with the sentiment here, you spent a year and you learnt a lot out of it. Your co-founder would probably have to put in more money (maybe for a few more years) before she sees any profit, if any. So the risk is far greater on her side. If this works, ask your co-founder to let you keep a small minority stake and the let her convert all her debt to equity. This way, if that company does succeed, you will get some value out of it, and you will be recognized as a co-founder. If you just walk away with the "assets" (whatever they are worth), you may get some money, but a load of heartburn.