If my husband is sued and he signed an inter-spousal transfer grant deed to wife can the creditors levy the house?

Introduction: This memorandum addresses the legal implications of an interspousal grant deed in the context of a lawsuit and potential creditor claims. The primary issues are whether creditors can levy the house if the user signed an interspousal grant deed to his wife, whether the court can declare the deed null and void if it determines that the transfer of property was done to defraud creditors, and the significance of the timing of the transfer and the lawsuit.

Statement of Facts: The husband has signed an interspousal grant deed, transferring his interest in their house to his wife. He is concerned about the potential for creditors to levy the house if he is sued.

Legal Standards/Rules: In California, an interspousal grant deed can transfer the interest in a property from one spouse to another, making the recipient the sole owner. However, if the court determines that the transfer was done to defraud creditors, it may declare the deed null and void, allowing creditors to levy the house. The timing of the transfer and the lawsuit can also be significant.

Analysis: If the user has transferred his interest in the property to his wife through an interspousal grant deed, creditors may not be able to levy the house if a judgment is rendered against him, as he no longer has an ownership interest in it. However, if the court determines that the transfer was done to defraud creditors, it may declare the deed null and void, allowing creditors to levy the house. Engelman v. Gordon. The timing of the transfer and the lawsuit can also be significant. If the transfer occurred after the lawsuit was initiated or a judgment was rendered, the court may view it as an attempt to evade creditors.

Conclusion: In conclusion, while an interspousal grant deed can protect a property from being levied by creditors, this protection may not hold if the court determines that the transfer was done to defraud creditors. The timing of the transfer and the lawsuit can also significantly impact the court's decision.

*This article does not constitute legal advice nor does it form an attorney-client relationship. It is important that you consult with an attorney about your case.