If my husband was the cause of a car accident, how can we protect ourselves?

We live in a tort state but also have twice the required amount in liability coverage. I’ve read that if there is a law suit for over our coverage amount we have to pay out-of-pocket. How do we protect ourselves from totally being wiped out? We were hoping to start a family and purchase a home in the next 3 years. Should we separate our bank accounts and put all assets under my name until the statute of limitations runs out? Or will umbrella coverage be enough? Can we purchase additional umbrella coverage now that the accident has happened?

Asked on July 20, 2012 under Accident Law, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The problem that you have after the accident occurred is that if you start transferring assets that you and your spouse have and if the lawsuit is not settled with insurance money, your personal assets could be subject to a resulting judgment and any transfers that you made could be subject to the Uniform Fraudulent of Transfer of Assets Act that most states have adopted.

Such act creates a statutory means for a creditor to set aside a transfer as being fraudulent and a means to prevent creditors from rightfully getting assets of a debtor. Given the seriousness of the situation you and your spouse are in, I suggets that you consult with a personal injury attorney to defend you in your matter beyond any defense that an attorney appointed by your insurance carrier will do.


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