Legal Question in Real Estate Law in Indiana

Re: Protecting my interest in jointly owned real estate

If your daughter reneges on the car loan, your husband would be liable, but as long as the real estate is jointly titled, the creditor could not foreclose on the house. At this point, the only assets subject to attachment would be those in your husband's name only, and only to the extent that are not exempted by the state (varies from state to state).

As far as your husband being liable if his daughter does not keep her insurance in force and has an accident, there is nothing there that would make him liable for any damages. Again, the problem is if she totaled the car, and the creditor went after your husband for the balance as he co-signed the note.

Re: Protecting my interest in jointly owned real estate

Joint assets are automatically protected against the claims of creditors of just one of the joint owners. Exceptions to this are for bank accounts which can be attached as to the extent of the interest of the debtor-owner, so long as the nondebtor-owner challenges the right of a creditor to invade the account during proceedings supplement to execution of judgment.

I would recommend that you talk to either the finance company or your insurance company to make sure that there is insurance on the vehicle insuring your spouse's interest and liability for the activities of his daughter.

To the extent this is my second reply, I apologize but I was uncertain the system posted my first reply.

You should also be aware that your spouse had the right in any proceedings supplemental to claim his exemptions in the event he owns any property in his name alone. You can feel secure in that no creditor of his can reach the equity in your home.