I am married with two kids and live in the commonwealth of Kentucky. It is my understanding that if I, as an individual, owe a medical debt or a tax debt, the organization I owe the debt to can only come after my half of any personal asset(s) or monies. They cannot come after my wife's half unless she consents or guarentees payment. My question is two fold. First, is my understanding correct and second, if it correct, would it be a good idea to divorce to protect any asset(s) in the wifes name for the sake of my kids future inheritance?
1 Answer from Attorneys
First, you are correct that a creditor can only come after assets in your name or in joint name. If assets are in both names then a creditor may be able to come after part or all. A separation or divorce could protect assets for your wife and kids, but it may also be possible to simply transfer assets into her name to avoid a creditor being able to come after an asset depending on what assets exist. I would consult an attorney in more depth.