Does adding DW to my deed protect home?

[leaper924s]

Would it be wise of me to add my wifes name to my home deed? In the state of Florida, creditors can't attach property of joint ownership if only one is the debtor. I realize that in Florida creditors (unsecured) can't take my home, or force me to sell it, but just having the judgement(s) against me has stopped my ability to get any refinancing.

My thinking is that if my wife is added to the deed with me, the home would be excluded from any judgement and I could get a reverse mtg,, Let me know if I am off base, or if you have an alternative solution. thanks leaper,,,,,,,,,,,,,

[needinfo]

Hi, this is only my understanding of a method of taking title to real property. Not all states interpret the benefits to this the same way. Look up your state.

http://www.ilnb.uscourts.gov/JudgeWedoff/Opinions/TBEoutline.pdf

Here is a link to an historical definition (included in a bankruptcy article) of "tenancy by the entirety", a method of holding title whereby "the marriage" owns the property (and not the individuals), thereby in some states offering protection from creditors, UNLESS the creditor is owed by BOTH spouses (joint credit card account, for instance).

I don't know if transferring title using this method would be valid protection if a joint debt prexists the new title. You might want to consult an asset protection/estate planning attorney.

Hope this helps.

[Winspear]

I am not sure if this applys in this case, but in a bankruptcy this would be termed a "fraudulent conveyance" which basically means that you are mainly conveying property solely to avoid a creditor from getting access to it...

Here again, this may or may not apply to you...

Here is a definition:

A fraudulent conveyance, also fraudulent transfer is a civil cause of action. It arises in debtor/creditor relations, particularly with reference to insolvent debtors. The cause of action is typically brought by creditors or by bankruptcy trustees. The usual fact situation involves a debtor who donates his assets, usually to an "insider", and leaves himself nothing to pay his creditors as part of an asset protection scheme. However, it is not uncommon to see fraudulent conveyance applications in relation to bona fides transfers, where the bankrupt has simply been more generous than they should have or, in business transactions, the business should have ceased trading earlier to avoid giving certain business creditors an unfair preference (see generally, wrongful trading). If prosecuted successfully, the plaintiff is entitled to recover the property transferred or its value from the transferee who has received a gift of the debtor's assests.

[Winspear]

The more I think about it, I don't think that in your case it would be considered a "fraudulent conveyance" because #1 she is your wife and #2 you both live at the same address and share assets in common...

BUT I wonder if it could be argued that because your wife's name was not on the deed when the judgment was entered that the judgment should still stand?

Perhps some of the more experienced people on the board can share their thoughts on this...

Best of luck to you! Please keep us updated on this.

[Methuss]

As long as you don't plan on filing for bankruptcy for six or more months then you should add your wife to the deed. There are more reasons than property exemptions that validate this need. If you got killed by a runaway bull tomorrow your wife would have to fight through probate and a bunch of legal hoops to retain ownership of the property. But if she is on the deed, then she automatically has rights on the property with no legal hassle.

But have a lawyer draw up the deed change. It's worth the (average) $250 because you can't afford mistakes on your warranty deed. This is one time self-help legal is not only unwise, but potentially disasterous.