Originally Posted by FreedomTracker
In fact, may want to consider adding an umbrella policy for extra protection. I have also heard some attorneys recommend having each vehicle in a household titled in a different name vs. Joint ownership.
This bit of advice saved my house 10 years ago in an "at fault" accident.
Car was in my name; I was driving; my fault.
I had a savings account in my name only (small amount of money - couple hundred bucks) (mad money)
DW car in her name, she had a savings account in her name only from an inheritance.
Everything else we have is jointly held. (House, main banking accounts, brokerage, etc)
While insurance was good to 100,000 (at the time) the person hit claimed she was injured so severely she could not work (headaches) (thought she had hit the lottery) and sued me for 5 million dollars. (damage to cars less than 3,000 dollars total and she was not wearing a seat belt)
When told that she could could not get my wife involved in the law suit because only MY assets could be judged against (not joint assets). (value of the car at the time of the accident and my savings account - they could have gone for attaching my income but I was eligible to retire. In PA they can't judge against retirement assets in a civil case) they settled for what my insurance was offering, TG.) WAY TOO MUCH IMO, but I was happy to have it all behind.
This could have turned out VERY differently if the car was in both our names.
As a joint asset; all joint assets would have been subject to a judgement (no "homestead provision" in PA so the house would have been on the table) if it went to trial and I lost (doubtful, but possible, as she would have sued in Philadelphia where everyone thinks car accidents are the way to financial security).