Is everything in non-medical spouse's name....

....for malpractice reasons?

I posted this question at the bottom of my last post in the thread about bank accounts but thought maybe no one would see it there.

I've heard that all the assets (car, house, etc.) should be in the non-medical spouse's name alone so that if the medical spouse gets sued, those assets can't be touched. Does anyone do this (I have relatives who do it this way--the non-medical spouse owns everything and the medical spouse owns nothing).

Would this go for bank accounts as well--i.e. should the medical spouse's name not even appear on the checks or on the account? Would it also hold true for investments--or did I read somewhere that retirement accounts can't be emptied to help pay the judgment in a malpractice claim against the medical spouse?

Also, did you get a lawyer to help you with this when your spouse started an attending position--to put all your existing assets in the non-medical spouse's name? Any other legal things in terms of malpractice to be aware of once the medical spouse starts an attending position?

[PrincessFiona]

Actually, everything we own is a 'joint' thing. Your husband's malpractice insurance that he either purchases privately or is provided for him by the hospital or group practice should cover any lawsuit.

Am I wrong?

kris

I think it varies state by state. In some states, a house has to be jointly held so that wouldn't even be an option. If you put everything in one person's name, that might affect estate planning as well? I've heard of some people putting their assets in a trust to protect from a malpractice case. I would talk to an attorney about it.

I guess I've heard differently.....from relatives (older married couples).....they put everything in the non-medical spouse's name, because they implied that the malpractice insurance may not be enough to cover the full judgment if the medical spouse were ever to be sued, and in that instance the medical spouse's personal assets could be taken to cover it.....maybe they're just being super careful.

I don't know....I don't know anything about this topic but these relatives told me to consult a lawyer soon and get everything we own put into my name. I just wondered if this would include personal investments because I thought I read somewhere that retirement accounts in the medical spouse's name can't be taken to cover malpractice judgments....but I'm not sure if I remember correctly though.

Here's an article I just found about this topic.

This article also explains why malpractice insurance may not always be enough....which is what my relatives keep saying.

But the article also implies that these things are a state-by-state issue....what happens if you move a whole bunch of times...do you have to keep changing your asset protection plan?

http://www.physiciansnews.com/finance/1101dv.html

From reading that, forming a partnership sounds like a good option. I really think it depends by state. I know that in Colorado it is no problem to have a primary residence in one spouse's name but in Wisconsin it is. It also sounds like you need to take estate planning into consideration with having all assets in one persons name. That could be a factor too.

Has anyone consulted an estate lawyer about asset protection plans? How did you find the lawyer?

not to be flip, but aren't you a lawyer?

I've heard the thing about everything being in the non-medical spouses name, too, but I think a lot depends on your specific situation including the state you live in, the kind of practice you're in (academic or private), your specialty (higher risk) ... all sorts of things. I would consult a lawyer who specializes in medicine-related stuff. Ask the staff at your dh's new practice who they use.

I have a law degree, yes....but that doesn't mean they tell you how to go about finding a lawyer in law school! I have no idea how to find a lawyer, quite frankly....

We need a lawyer specializing in elder care/estate issues. We got good advice from a lawyer (who doesn't practice in that area) -- go to the state bar association website and see who the committee chair(s) are for that section of law. Chances are, they know what they are doing. Also, you could see who does CLE seminars on that topic.

[DCJenn]

For those of us in the military, we are protected from "most" malpractice issues although things do bleed into the civilian side when there are ugly lawsuits. We do have specific JAG lawyers that do nothing but medical stuff (our friend married one!) and these guys know their stuff. Our assets are for the most part joint. Once we leave the military, depending on where we live and what I'm doing (my career can have it's own liability issues) we'll see.

Jenn

I have a law degree, yes....but that doesn't mean they tell you how to go about finding a lawyer in law school! I have no idea how to find a lawyer, quite frankly....

I was actually referring to more of the legal questions than the finding of a lawyer. The best way to find a lawyer (any service IMO) is word of mouth. Ask the practice your dh is joining who they use.

Our stuff is in both our names. Its a real PITA to try to do an inquiry on an account and not be able to do it because your name isn't on the account.

We have been meaning to check in to this more, but haven't gotten around to it. Right now pretty much everything is in both of our names. Some of DH's partners have put everything in the spouse's name, some have left their assets in both names, some have formed trusts, and others have formed LLC's. I think it is pretty simple to form an LLC and the cost is somewhere around $2500 in NC, but the cost depends on your circumstances and what state you're in.

I read an article about 6 months ago about a physician who lost everything in a lawsuit. All of his personal assets were frozen while the case was pending because the plaintiff was asking for more than what his malpractice covered and he had no way of paying his bills. Even though the court found that there was no wrongdoing, he was still forced to file bankruptcy. I don't remember where this particular physician lived. I'll see if I can find that article again.

I agree with the others...your best bet is to check with an estate lawyer and the best way to find one is through word of mouth. I'm sure your husband's colleagues will be able to recommend one.

[Meenah]

My house is in my name only and the mortgage is in both names. I have the asset and we share the liability, for various reasons, including potential lawsuits. This was not a problem in NJ. His name is pretty much on nothing.