Can a creditor seize joint marital property to satisfy a judgment against one spouse?

[datalives]

What is the name of your state?What is the name of your state? North Carolina

My wife has a judgment against her solely for an unpaid credit card debt. She is filing the Motion to Set Off Debtor's Exempt Property tomorrow.

Her exempt property will include her equity in several jointly owned marital property vehicles and a boat (which are owned free and clear of any liens currently). There will be perhaps a few thousand dollars of her equity which will not be exempt, over and above my share of the equity in those vehicles and boat.

Can the creditor seize or place liens against jointly owned marital personal property to satisfy a judgment against just one of the spouses?

If the creditor can seize or place liens against those assets, can we sell any of those assets before such action takes place?

Thanks in advance for your advice and time, we just want to know our rights and make sure we don't do anything wrong.

 

[Veronica1228]

What is the name of your state?What is the name of your state? North Carolina

My wife has a judgment against her solely for an unpaid credit card debt. She is filing the Motion to Set Off Debtor's Exempt Property tomorrow.

Her exempt property will include her equity in several jointly owned marital property vehicles and a boat (which are owned free and clear of any liens currently). There will be perhaps a few thousand dollars of her equity which will not be exempt, over and above my share of the equity in those vehicles and boat.

Can the creditor seize or place liens against jointly owned marital personal property to satisfy a judgment against just one of the spouses?

If the creditor can seize or place liens against those assets, can we sell any of those assets before such action takes place?

Thanks in advance for your advice and time, we just want to know our rights and make sure we don't do anything wrong.

North Carolina is not a Marital Property State, therefore, I don't know what you mean by marital personal property. However, if the creditor is awarded a judgement against your wife, they can seize any assests within the confines of the award that is either soley or jointly owned by your wife.

 

[datalives]

By "marital property", I mean property that was acquired during the course of marriage, as opposed to "pre-marital property", or property that was owned individually before marriage.


As to my question regarding selling property before it is seized or a lien placed against it, any answers?


And what is the significance of a "marital property state"?

Thanks in advance for your answers.

 

[Veronica1228]

By "marital property", I mean property that was acquired during the course of marriage, as opposed to "pre-marital property", or property that was owned individually before marriage.


As to my question regarding selling property before it is seized or a lien placed against it, any answers?


And what is the significance of a "marital property state"?

Thanks in advance for your answers.

These distinctions that you stated above don't come into play in your state. There are 9 Marital Property States including Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. It is in these states that assest are viewed as pre-marital, etc. during say, a dissolution of marriage for example. For the sake of your issue, the only thing that will be considered is actual ownership. Are the titles etc. in your wife's name? That is what the court will be looking at.

You can attempt to sell property, however I'm sure this could easily be discovered by the courts through very little investigation. You would really only be converting an asset from property to cash. It could still be attachable as a judgement award.

Check back for more answers though. Others may come by with more information for you.

 

[datalives]

I understand your listing of states as Marital Property states does not include North Carolina.

I'm not doubting you, but I was divorced in North Carolina (obviously now remarried to this wife) in 1995 or so, and all of my pre-marital assets were excluded from the property settlement.

Did North Carolina change away from a "Marital Property" state since the mid-1990's?

Just trying to correlate your response with my experience (which of course may be out of date).

Thanks again for your reply!

 

[Veronica1228]

I understand your listing of states as Marital Property states does not include North Carolina.

I'm not doubting you, but I was divorced in North Carolina (obviously now remarried to this wife) in 1995 or so, and all of my pre-marital assets were excluded from the property settlement.

Did North Carolina change away from a "Marital Property" state since the mid-1990's?

Just trying to correlate your response with my experience (which of course may be out of date).

Thanks again for your reply!

To be honest with you, I don't know the answer to your question regarding NC and if it was a Marital Property state 10 years ago since I was still in high school then! Also, my field is Banking and Finance and NC may look at assets in this way for division of property during divorce proceedings, but I wouldn't know. The only thing I CAN say is that for purposes of looking at assets to attach a judgement to, they will look at actual ownership. If your wife's name is on a title or account as either a sole or joint owner then they can levy, garnish, or place a lien against it if they seek and win their case.

 

[datalives]

Thanks very much for your answers.
I appreciate your help!

 

[Ladynred]

Ok, lets clear this up. What Veronica is referring to as 'marital property states' is otherwise known as COMMUNITY PROPERTY states, and NC is NOT a community property state. In a CP state, both parties are held equally liable for ALL debts acquired during the marriage. In Non-CP states, all property remains the sole property of each individual if its in one name only. Property, like household furnishings, acquired during the marriage basically considered a 50/50 split because each derives benefit from the assets.

Your wife's interest in the equity value of jointly owned property would only be 50%. If there is property that either of you acquired BEFORE you married, that property STAYS separate property.. and pre-marital debts STAY separate too. Each person is ONLY liable for those debts bearing his/her name with the obvious exception of joint accounts.

 

[datalives]

Thanks for the clarification, Ladynred.
That info syncs with my divorce experience.

So my last unanswered question is:

"Can the creditor seize or place liens against jointly owned marital personal property to satisfy a judgment against just one of the spouses?"


I'm assuming the answer is yes, since it's jointly owned?

 

[Ladynred]

They can place a lien on joint assets, but siezing it would be a different matter. Since each person really only 'owns' 50% of the value of the asset, it may not be worth it for a judgment creditor to seize the asset.