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Protection in a lawsuit?

Posted on: 07th May, 2009 07:37 pm
My husband and I are both on the title and mortgage of our home. Our credit scores are excellent and there are no late payments on house or bills nor are there any liens or impending liens on the home.
Situation - in a lawsuit if a judgement were filed against him, would our home become vulnerable to liens (that could tie up all of the equity in our home)? In preparing for a worst case scenario, should we consider quit claiming our home to me? If no, is there a better option to protect the equity in our home?
Hi Guest,

Yes, the creditors can place lien on this property. Quit claiming the property to you after the judgment has been filed can be considered as a fraudulent activity. Your husband can be penalized for it and transfer of the property can be considered null and void. I would suggest you to contact your attorney and take his opinion before transferring the property in your name.
Posted on: 08th May, 2009 12:48 am
We were considering quit claiming the property before any possible judgements are rendered. Does that change your opinion?
Posted on: 08th May, 2009 04:59 am
Hi TGP,

If the creditors come to know that you transferred the property just to save it from liens, then it will still be considered as a fraudulent activity. I would second Adonis and suggest you to contact your attorney before taking any steps.

Thanks
Posted on: 08th May, 2009 08:36 pm
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