Lost a civil judgment in court. A dispute over real estate down payment. The down real estate down payment will be returned, but case lasted a long time, so there is sizable amount of interest built up. Own a home and one rental property, which is titled in both my wife's and my name. Have owned the rental about two years. Can my wife pay me 50% of the equity and put the title in her name? We would have a title company do the paper work, and my wife would take the money she pays me out of her retirement. We live in Kansas. I am retired and collect soc sec so protecting this rental property from a judgment seems like it would keep me safe from creditors.
Country relating to Question: United States
State (if USA): Kansas
DearCustomer- A transfer of this type is known as a "transfer to avoid creditors" and will have no effect on protecting any asset transferred. So it will be a waste of time to transfer any titles to any property at this point. You could borrow against the property to pay off the judgment but if there is already a mortgage the judgment would have little effect unless you were going to sell or refinance since the first mortgage would have to be paid before any judgments.
25 years experience
Since I have no other asset the creditor could try and get, what happens with this rental? I have no intention of selling it. Would they try and make me sell it?
-Could you explain your situation a little more?Is it mortgaged?
Is the deed joint with survivorship?
Yes, the property is mortgaged. Probably worth $120k w/ a mortgage of $80k. Not sure about the deed with survivorship. This property belonged to my ex wife (who died) she made me trustee to her estate, so I could handle her financial matters for our children.My son lived in this property for awhile, but wanted to move. He owed me money, so I foregave his debt took over the property. My current wife started paying the mortgage, which is still in the name of my wife's trust. I went to the court a couple of years ago, and put the title in my and wife's name, since my wife was making the payments. I tell you my wife makes the payments since I am retired and on soc sec.
With a mortgage of this amount I see no problem. The judgment creditor would be wasting their time trying to force a sale of a property with this debt to equity ratio since a forced sale would likely bring little or nothing over an above the balance of the first mortgage. The other problem is that they cannot attach your wife's interest in the property if she is not on the judgment. So the judgment will simply be a matter of record and whenever the property is sold or refinanced the judgment would have to be either paid or settled. A bigger problem is that the creditor can attach other assets such as your bank account or rental income from the property so you may have to deal with the aspects of garnishments. They cannot garnish retirement income.
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