Can Joint Property Be Taken to Pay Debt?
If you jointly own property--real estate, a bank account, a business--with another individual, you need to understand your exposure when it comes to joint property being taken to pay debt. Specifically, you need to recognize what risk you bear that your jointly owned property can be taken by a creditor of your co-owner.
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Effects
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Initially, it is very likely a creditor attempting to collect a debt owed by your co-owner will attempt to take possession of jointly owned property.
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Considerations
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If the debt is owed by you and the co-owner of property, the creditor will have the ability to seize that property to satisfy the obligation.
Prevention/Solution
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A debt is not a joint obligation and gives you the ability object to the seizure of the property. In some cases, you will need to go to court to protect your interest.
Injured Spouse
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The law provides for an "injured spouse affidavit." This is a document under oath that sets forth you have an interest in the property that a creditor is attempting to seize for a debt owed only by your spouse.
Division of Property
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If the property is subject to division (a bank account in which each owner has a 50 percent interest, for example), the creditor can proceed to attempt to seize half of the account to satisfy the debt.
References
Resources
- Photo Credit "Twenties" is Copyrighted by Flickr user: AComment under the Creative Commons Attribution license.
