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  • Jonathan Jupp
    started a topic wife being sued - divorce option

    wife being sued - divorce option

    My wife is being sued for an auto accident she caused. She is
    incarcerated and there is a possibility of lawsuit, though none has
    been filed as of yet. Her auto insurance presumeably takes care of the
    front line defense, but in order to protect my assets (I own my house,
    house is in my name alone, and I owned the house for 5 years prior to
    marriage). Although drastic, I am considering divorce to protect my
    hard earned assets.


  • Kevin Haddock
    replied
    wife being sued - divorce option

    "Jonathan Jupp" <[email protected]> writes:
    My wife is being sued for an auto accident she caused. She is incarcerated and there is a possibility of lawsuit, though none has been filed as of yet. Her auto insurance presumeably takes care of the front line defense, but in order to protect my assets (I own my house, house is in my name alone, and I owned the house for 5 years prior to marriage). Although drastic, I am considering divorce to protect my hard earned assets.
    I don't think that would help because the "horse is already out of the
    barn" so to speak. This is why marriages suck as an asset protection
    entity. Consider stripping your equity by trading your house for
    stock in a corporation wherein your children hold significant holdings
    in convertible bonds that were bought for a huge discount (then have
    them convert the bonds after any subsequent judgment), or using it to
    buy a stock option in a company that they own (but the company better
    look like at least on paper that it is a reasonable investment). You
    might be able to trade your house for a home in a state with a high
    enough homestead exemption, or set up your own financier (a friend)
    for a deed of trust loan (note swap) to bring your equity down below
    the homestead value. If that note (your friend gets) were to have
    terrible terms it might act as some deterrent to taking it in
    execution.

    These are just some ideas I've had and that I've mined from some asset
    protection sites and books. I'd suggest you start digging deeper than
    your initial knee jerk reaction of divorce.

    --
    Pumping irony builds puns of steel.

    Leave a comment:


  • Timothy Horrigan
    replied
    wife being sued - divorce option

    >She is
    incarcerated and there is a possibility of lawsuit, though none hasbeen filed as of yet.
    You need a lawyer!

    In the meantime, here is my uninformed opinion:

    Divorce might not help you here, since you were married to her when the
    accident occurred. Also, if you plan to continue living with her after
    she gets out of jail, it is advantageous to continued to be married to
    her--- especially if the other party's lawyers assert that the divorce
    was a sham undertaken to shield your assets from being liquidated to
    pay the damages. It is even possible that your divorce might not be
    granted.

    A simpler option might be for both of you to declare bankruptcy if and
    when she gets slammed with a judgment which is too high to pay out of
    your liquid assets.

    As a practical matter, the judgement is likely to fall within the
    limits of the available insurance. The other party's lawyers are
    unlikely to go after money which might disappear as soon as the
    judgment is announced, and they are even less likely to go after money
    which doesn't exist at all. Another practical consideration is that
    shielding your assets from your wife's creditors could create a
    situation down the road where she is an ex-con with many thousands of
    dollars of unpaid debt hanging over her. And that's not good,
    especially if you still care about her and/or if you have children to
    raise and/or if you are business as well as romantic partners...

    Leave a comment:


  • B. Peg
    replied
    wife being sued - divorce option

    >"Jonathan Jupp" wrote:
    My wife is being sued for an auto accident she caused. She is incarcerated and there is a possibility of lawsuit, though none has been filed as of yet. Her auto insurance presumeably takes care of the front line defense, but in order to protect my assets (I own my house, house is in my name alone, and I owned the house for 5 years prior to marriage). Although drastic, I am considering divorce to protect my hard earned assets.
    Friend had similar experience, although he was incapacitated due to a
    stroke. They owned a restaurant at ages 45. He stroked out - after 3 heart
    attacks which were mild in comparison - and in one month hit their insurance
    cap of $250,000 and were dropped. He was still in the hospital in a
    vegetative state. His wife sold the restaurant and their house and
    subsequently filed for divorce to protect their remaining assets (her
    go-to-work car). He did snap out of it a month or so later, but they are
    flat broke and still together (he is unable to work due to severe memory
    lapses and physical problems).

    It may vary with your state law. I'd do some preliminary research it at
    your local public law library and maybe get legal counsel as well before it
    gets too messy.

    B~

    Leave a comment:


  • Stuart Bronstein
    replied
    wife being sued - divorce option

    "Jonathan Jupp" <[email protected]> wrote:
    My wife is being sued for an auto accident she caused. She is incarcerated and there is a possibility of lawsuit, though none has been filed as of yet. Her auto insurance presumeably takes care of the front line defense, but in order to protect my assets (I own my house, house is in my name alone, and I owned the house for 5 years prior to marriage). Although drastic, I am considering divorce to protect my hard earned assets.
    It depends on the laws of the state you are in - is there a law that
    could make you liable under the circumstances? Possible but
    doubtful. Talk to a collections lawyer before a divorce lawyer.

    The other thing to realize is that if there is insurance and your
    wife doesn't have a lot of assets in her own name, it's unlikely that
    the plaintiff will seek damages in excess of the insurance policy.
    Even if he could get it, the huge effort is generally not worth the
    amount extra they would get.

    Stu

    Leave a comment:


  • Robert Bonomi
    replied
    wife being sued - divorce option

    In article <[email protected]>,
    Jonathan Jupp <[email protected]> wrote:
    My wife is being sued for an auto accident she caused. She isincarcerated and there is a possibility of lawsuit, though none hasbeen filed as of yet. Her auto insurance presumeably takes care of thefront line defense, but in order to protect my assets (I own my house,house is in my name alone, and I owned the house for 5 years prior tomarriage). Although drastic, I am considering divorce to protect myhard earned assets.
    Don't count on _that_ helping.

    *if* there is liability, it accrues _as_of_ the time of the accident.
    You do *NOT* escape from that by 'doing something after the fact'.

    Leave a comment:


  • Paul Cassel
    replied
    wife being sued - divorce option

    Jonathan Jupp wrote:
    My wife is being sued for an auto accident she caused. She is incarcerated and there is a possibility of lawsuit, though none has been filed as of yet. Her auto insurance presumeably takes care of the front line defense, but in order to protect my assets (I own my house, house is in my name alone, and I owned the house for 5 years prior to marriage). Although drastic, I am considering divorce to protect my hard earned assets.
    Too late. If your State has laws making your property attachable by
    virtue of a judgment against her, then she was married at the time of
    the crash. Thus the divorce would be viewed as a form of unlawful
    conveyance just as if you thought someone was to sue you, you convey
    over all your property to a friend.

    If I were you, I'd spend $100 or so with a marital attorney of your
    State and find out what the laws are as applied to your circumstance.
    For example, was the house yours before the marriage? That can make all
    the difference in the world. At least find out what your current status
    is. You may be sitting ok as you are.

    -paul
    ianal

    Leave a comment:

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