Does the manner in which title to property is held, for example jointly with a spouse, provide any protection from creditors?

João Valadas CorielManaging Partner, Valadas Coriel & Associados

Taken from International Asset Protection Planning: The debtor’s dilemma – planning for and protecting against future judgments
Virtual Round Table Series, December 2016: Private Client Working Group

If only one spouse is on the title of the judgment debt, that spouse is the only one responsible for the debt incurred. However, if individual assets are not enough to cover judgment debt, irrespective of the marital regime, the creditor can chase assets belonging to the other spouse provided they can proof that the debt was incurred with the aim of benefiting both. Round Table Q&A Continued ! IR Global Annual Conference – Amsterdam, October 2016 irglobal.com | page 7 Virtual Round Table | December 2016 | International Asset Protection Planning This is not an automatic procedure; if the other spouse does not figure in the title and the creditor wants to execute the judgment debt against both spouses, the other spouse must be summoned by Court to accept or deny responsibility for such debt. If he or she denies such liability, the burden of proof to show that it was incurred for the benefit of both spouses lies with the creditor. Where property is concerned, there are several ways in which title to property provides protection from creditors. Real assets held under a trust, or under a right of use and residence may be safeguarded.