Legal Question in Credit and Debt Law in California
Can a judgment against one spouse be collected from community property assets?
BACKGROUND.....Wife and husband seperated on 1/3/93. Wife quit claimed jointly held home to husband on 1/23/03, quit claim was notorized and delivered to husband. Wife and husband were sued on 12/14/93. Judgment was granted against wife as individual and as co-trustee of a trust. Nothing was adjudged against the husband in any form. Husband sold houseon 1/2/93. Title Company is holding proceeds from sale. their position is the proceeds are community property because the parties are still married and the quit claim deed was not recorded.
Can a judgement against one spouse be collected under the above circumstances?
1 Answer from Attorneys
Re: Can a judgment against one spouse be collected from community property asse
In a word, yes!! In California spouses can transmutate (convert) community property, to the seperate property of the other. However in the present situation, the transfer reaks of fraud because of the dates. It appears that she was sued before the transfer. Generally where there is a judgement against one spouse who was not engaged in community activities, a creditor must look to seperate property first to settle the judgement, then however, the can go after community property. If you were ever divorced you could seek reimbursement for the money.
Many a person has done the exact same thing you have done to try to judgment proof their assets. You could file suit to have the money released to you, however your failure to record the deed, and the dates of the transfer, coupled with whether you paid any consideration to your wife for the transfer would all be factors against you!!
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