Re: Lien on separate property of non-debtor spouse

Posted by Lee (24.7.164.123) on December 17, 2003 at 03:56:36:

In Reply to: Re: Lien on separate property of non-debtor spouse posted by Why Chat on December 16, 2003 at 16:14:12:

The quit claim was at the time of purchase, a few years prior to the filing of the lien. The earliest it could have been filed was March 2003, as the last refinance closed in February. If the creditor had been diligent enought to file a lien against my residence, they would have seen that I am not listed as an owner. (What if I were renting from a person with the same surname? I suppose my landlord would be responsible for my debt!)
I contacted the creditor, who refused to remove it because California is a community property state. They said that they will receive the lien amount through escrow (even though the entire amount was paid this year after I took a second job for that purpose).
However, a quit claim to property purchased from separate assets shields such property from community claims. In a divorce, it is not divided. If spouses file taxes separately, per IRS and FTB rules any deductions are not divided.
This does look like fraud, since they want the debt to be satisfied twice. I can do this through small claims, but there are no actual damages if the judge orders the removal. Through limited civil I may be able to get punitive damages if the jerks aren't smart enough to settle.

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