You mentioned that “he is still on the mortgage” Did you mean that he is still on the deed? If he is only on the mortgage she shouldn’t have a problem because he is not on title. However, if he is on title your girlfriend could have a major problem. She needs to consult an attorney in her state that is well versed in asset protection. In my state (Maryland), any property held as tenants by the entirety is protected from judgement creditors, however other states do not offer this protection.
I need info on land trusts. My girlfriend has a property (purchased while she was married). It is valued at $300,000 and is her primary residence. Her ex husband is going through a malpractice suit. He is still on the mortgage. Would a land trust help in any way in this scenario? His suit is still in the “fact finding” stage and there has been no judgment of any kind. Also, should she protect all of her assets and finances with a property trust? Any place I can get this info would be a plus!
Posted by John Merchant on January 22, 2003 at 24:50:09:
Just be aware that ANY conveyance she might make of the RE now might be set aside by the court if a claim against her Ex is already pending and his property is now deeded to a trust or corp. A court could find that such a conveyance was an effort to fraudulently remove RE from losing party’s name and just order it undone.
And you’re not seriously thinking a Legal Board like this could be any serious substitute for a lawyer to look at it for here…are you? With a $300k property to protect, it seems to me that spending a few bucks for a good legal opinion from a good lawyer would make more sense.
Re: Land Trusts…Can this be done? - Posted by Bill Gatten
Posted by Bill Gatten on January 21, 2003 at 12:38:00:
Yes, a land trust can help tremendously in protecting the property from judgement creditor liens. Your friend needs merely to get the property deeded to a third-party trustee for a legitimate land trust, along with a Quit Claim Deed (or direct transfer) from her Ex. She should (would be well advised to) appoint another unrelated party as a “remainder” co-beneficiary, so as to protect against partionability, in that in that each party’s interest in the Realty has now been converteed to Personalty (in any state other than La. or Tn…See “Doctrine of Equitable Conversion”), a charging order against any involved party (or previously involved party) will not (cannot) attach to the trust property (which property is no longer owed by any of the parties, but is now legally and equitably owed entirely by the third party nominee).