Fraudulant Transfer/Conveyance?

[kar_kirkland]

Washington State

Hopefully I am in the right forum for this... I tried civil litigation and it was obvious that the senior members who responded were clueless.

Briefly, here is my situation:

My husband was at fault in a vehicular assault accident in April. The victims medical bills are more than twice our insurance coverage. We are preparing to be sued by either the victim, or her insurance company if they pay out her UIM coverage for the balance owed.

Now, we live in a townhome which we would like to sell and use the small amount of equity as a down on a house. In the event that a 10-20 year judgment comes down on us we do not want to be stuck where we are living.

My question:

Is this a legal move or would it be considered fraudulant transfer?

Advice would be greatly appreciated. Thank you!

 

[Ladynred]

Since you haven't been sued yet, I doubt it could be deemed fraud. You aren't selling or transferring the townhouse to keep it out of the victim's reach (if you had an non-exempt equity that is). If you have/had a lot of non-exempt equity and you sold or quit-claimed it to another party, that might be deemed fraudulent.

 

[kar_kirkland]

We are under the $40k homestead exempt amount and will have the mortgage and title in both of our names. Thank you very much for your reply.