If my wife knows she is going to be sued can she sign her assets to me her husband?

Full question:

My wife's minor child may be convicted of assault (charged with felony).We know the accused plans on taking her to civil court and sue for a million dollars in damages. Should she quit claim our house to me and remove her name from the deeds plus another investment lot we own together in order to shift assets?

• Category: Civil Actions
• Date: 04/07/2025
• State: National

Answer:

I am prohibited from giving legal advice. Generally, a debtor may collect separate debt only from the assets of the debtor. However, it is possible for a court to void a transfer if it finds it was made to avoid payment of a valid debt.

To prove fraud, the creditor will look at such things as whether the person who obtained title actually paid for it and whether you were insolvent when the transfer was made. It is also possible for a creditor to void transfers made shortly before a person files for relief in bankruptcy.

If you own property with your spouse, and a creditor has a judgment against only one of you, the creditor cannot seize the property outright. However, the creditor can seize the "survivorship" interest of the one who owes the money. What this really means is that you will have a problem selling or borrowing money on your house if either you or your spouse owes a creditor who has obtained a judgment in court.

A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made, if the debtor made the transfer or incurred the obligation with the actual intent to hinder, delay, or defraud any creditor of the debtor.

In determining actual intent, consideration may be given to one, some or all of the following:

(1) The debtor had retained possession or control of the property transferred after the transfer.

(2) The transfer or obligation was concealed.

(3) Before the transfer was made or obligation was incurred, the debtor was sued or threatened with suit:

(4) The transfer was of substantially all the debtor's assets;

(5) The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred.

(6) The transfer had occurred shortly before or shortly after a substantial debt was incurred.

A transfer without consideration by one who is indebted is presumptively fraudulent, regardless of the actual intent of the transferor.