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Can a home be involved in a lawsuit?
Expert: Tony Frost
If a house is put in the spouse's name only, prior to starting a sole propriatorship is the house exempt from any lawsuit the (husband) sole propriator may be involved in?
Tony Frost answered:
If the husband transferee is solvent at the time of transfer of his interest in the home, the transfer is valid and cannot be successfully challenged by a creditor in future. If the transfer is made while the husband is insolvent or on the brink of insolvency, various statues can be invoked by a creditor (including the Fraudulent Conveyances Act)seeking to reverse the transfer.
About the author
Tony Frost is a litigation, commercial and estate lawyer with Mills & Mills LLP located at Yonge and St. Clair in Toronto. Click here for Tony's Profile.