Legal Question in Real Estate Law in Wisconsin

Exemption statutes protect assets which the law deems to be necessities, and WI state exemptions only recognize one home per married couple as a necessity which they can claim as exempt from the claims of general unsecured creditors (protecting up to $150,000 in equity, over and above any mortgages or other preexisting liens). Therefore, while there is nothing illegal about a married couple separating and each owning a separate home, if a creditor is attempting to collect from one of them by taking away one of these two homes, one of the homes may lack legal protection. The WI Marital Property Act recognizes a single "marital estate" for all of the couples' property, regardless of under which spouse's name it is titled and who possesses it, making all of it liable for the debts of either spouse. It is possible for couple to "opt out" of the marital property act, but this is difficult to accomplish in terms of affecting the rights of creditors, requiring timely notice to them before the debt is incurred. However, opting out does not create separate exemption rights for each to protect a separate home; only a divorce would accomplish that (in which event each former spouse could protect up to $75,000. of separate home equity). Federal exemptions, including a "wildcard" exemption applicable to any assets, are available to WI residents are more flexible that Wisconsin's, but protect a much lower dollar amount. Please do not assume that I am your attorney because of my response here, but feel free to call my office in Racine (262-633-3090 or email [email protected]) for clarifications regarding my answer. Otherwise, under the rules of this website, I would not be taking any further action on your case. See me on the web at www.jayknixonlaw.com. View my past answers at http://www.avvo.com/attorneys/53401-wi-jay-nixon-1529181/answers.html?sort=recency , or see an even larger collection of responses at http://www.lawguru.com/answers/search/attorney/jknixon, . Answers may contain attorney advertising materials.