Is it a good idea to title the family home my spouse if they have less lawsuit exposure?

Commonly the family residence is titled to the less liability prone spouse. While this makes the home safer, it also has drawbacks. One drawback is that you can't be certain that your spouse will remain liability free. You also run the risk that if you divorce, your spouse may sell or refinance the home and dissipate the proceeds. To prevent this, you may encumber the home to an entity that you control. Another disadvantage is that when marital assets are titled to only one spouse it frustrates good estate planning. Finally, creditors of the non-title spouse, may argue that the funds used to buy or maintain the home came from the debtor-spouse, and therefore, that spouse – and his creditors – has an equitable interest in the home. For these reasons, titling the home and other marital assets to the less vulnerable spouse is not always sound planning.

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