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highdirtguy

Junior Member
Indiana

1 am 57 years old, and remarried 3 years ago. Recent medical tests are show I have a major problem. What can I do to protect my wifes assets assuming I will have a lot of medicial bills, and possibly long term care. I assume dirvorce is one way, are there any other options? I do have good medicial insurance, at least for now and $50k in cash and maybe 150k in my 401k. My wife owns the house.

Thanks
 


Isis1

Senior Member
Am i understanding this correctly? You are expecting major medical bills, and you want to make sure your wife doesn't have to pay for the bills you may leave behind?
 

mistoffolees

Senior Member
Indiana

1 am 57 years old, and remarried 3 years ago. Recent medical tests are show I have a major problem. What can I do to protect my wifes assets assuming I will have a lot of medicial bills, and possibly long term care. I assume dirvorce is one way, are there any other options? I do have good medicial insurance, at least for now and $50k in cash and maybe 150k in my 401k. My wife owns the house.

Thanks
You're talking about fraud - and the state is pretty good at detecting and punishing it.
 

LdiJ

Senior Member
Indiana

1 am 57 years old, and remarried 3 years ago. Recent medical tests are show I have a major problem. What can I do to protect my wifes assets assuming I will have a lot of medicial bills, and possibly long term care. I assume dirvorce is one way, are there any other options? I do have good medicial insurance, at least for now and $50k in cash and maybe 150k in my 401k. My wife owns the house.

Thanks
Your wife's home (and income) is protected as long as she does not sign any forms accepting responsibility for your medical bills. Her house is not part of your assets. Since you have only been married three years and the housing market in Indiana has tanked in those three years, its unlikely that there is even any marital appreciation.

Your 401k is also protected, simply because its a retirement account. A creditor cannot go after a retirement account. However any income stream from the 401k would not be protected.

I would be best if your wife keeps her own money in her own accounts. However it would not be advisable for you to transfer any money to her.

As far as divorce is concerned, that is a person decision that is up to the two of you.
 

LdiJ

Senior Member
You're talking about fraud - and the state is pretty good at detecting and punishing it.
What fraud? If someone gets a divorce they are divorced. There is no fraud there. However her assets are protected anyway, and as I mentioned so is his 401k.
 
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mistoffolees

Senior Member
What fraud? If someone gets a divorce they are divorced. There is no fraud there. However her assets are protected anyway, and as I mentioned so is his 401k.
He's apparently talking about a fraudulent divorce as one possible way to hide assets.
 

LdiJ

Senior Member
He's apparently talking about a fraudulent divorce as one possible way to hide assets.
There is no such thing as a fraudulent divorce, at least not in this context. If they get divorced, they get divorced. Courts and creditors cannot treat them as legally married and/or punish them for getting divorced, even if they did it to protect the assets of one of the parties.

Now, if he transfers assets to her in the divorce that are above and beyond "equitable distribution", then you might call it a fraudulent property settlement, but the divorce itself cannot be fraudulent.
 

mistoffolees

Senior Member
There is no such thing as a fraudulent divorce, at least not in this context. If they get divorced, they get divorced. Courts and creditors cannot treat them as legally married and/or punish them for getting divorced, even if they did it to protect the assets of one of the parties.

Now, if he transfers assets to her in the divorce that are above and beyond "equitable distribution", then you might call it a fraudulent property settlement, but the divorce itself cannot be fraudulent.
You're playing games with terminology again.

The intent was clear. He wasn't talking about divorce for its own sake, but rather simply as a way to hide assets. It was as if they were going to stay together but get a divorce for the sake of avoiding debt obligations - possibly with unequal division of assets.

The divorce itself wouldn't be fraudulent, but the intent to hide assets from creditors clearly is.
 

nextwife

Senior Member
You're playing games with terminology again.

The intent was clear. He wasn't talking about divorce for its own sake, but rather simply as a way to hide assets. It was as if they were going to stay together but get a divorce for the sake of avoiding debt obligations - possibly with unequal division of assets.

The divorce itself wouldn't be fraudulent, but the intent to hide assets from creditors clearly is.
It IS legal to divorce and then reconcile and move back in together.
 

LdiJ

Senior Member
You're playing games with terminology again.

The intent was clear. He wasn't talking about divorce for its own sake, but rather simply as a way to hide assets. It was as if they were going to stay together but get a divorce for the sake of avoiding debt obligations - possibly with unequal division of assets.

The divorce itself wouldn't be fraudulent, but the intent to hide assets from creditors clearly is.
Again Misto...there is nothing fraudulent about divorcing in this context. An unequal division of marital assets (of which there isn't much after a 3 year marriage anyway) might give creditors some ammo, but a divorce, even to protect assets, is not fraudulent.
 

highdirtguy

Junior Member
Thanks

We have seperate bank accounts, but we also have a joint account for bills.
I am only worried about her obligation for my bills and/or long term care. I am not planning on hiding or moving my assets to her. My assumption is that I will be unable to work and keep my insurance, and when my money runs out will my wife be required to pay the bills.

Thanks for the responses.
 

mistoffolees

Senior Member
We have seperate bank accounts, but we also have a joint account for bills.
I am only worried about her obligation for my bills and/or long term care. I am not planning on hiding or moving my assets to her. My assumption is that I will be unable to work and keep my insurance, and when my money runs out will my wife be required to pay the bills.
That's certainly more reasonable.
 

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