“I don’t need asset protection. Last year, I transferred everything to my wife.”
Bad strategy. The transfer of assets to a spouse is usually not effective.
If the transfer of assets to a spouse leaves you with insufficient assets to satisfy a judgment, you are rendered legally insolvent. Such a transfer can easily be undone by a creditor as a constructive fraudulent conveyance.
In addition, the assets are still at risk should your spouse end up with claims against her or him.
In the event the marriage terminates, your spouse may walk off with the assets.
Finally, the transfer to the spouse must have occurred years in advance of a claim by a creditor, lest the transfer be challenged as a fraudulent conveyance.
Courts have the ability to look back in time for six years and undo fraudulent transfers. Thus, a husband sued this year must have transferred the assets to his wife at least six years ago.