Why it's hard for couples to hide their private homes from creditors

It might look good for couples to hold properties separately as a way to avoid some tax, but do your sums carefully to make sure you can afford such an action.

- Tan Ooi Boon

The key risk arises if either spouse lands in debt and faces bankruptcy action, as creditors can sue for the whole property held by the debtor.

A couple learnt this painful lesson when they "decoupled" from the matrimonial home – transferring it solely to the wife's name – so the husband could buy a more expensive home without having to pay the additional buyer's stamp duty.

What they did not count on was the husband's business failing. That triggered a chain of events that led to his new property being seized by creditors.

Here are three other cases of how creditors went after couples.

WORLDWIDE INJUNCTION TO FREEZE ASSETS

Like a plot straight from a TV drama, a creditor had to apply for a worldwide injunction to freeze a woman's assets, which included four condominium units worth over $12 million in all, so the funds could be used to settle debts.

What made this case unusual was that she was not even the debtor – instead, the husband had transferred all the properties to her as part of their "divorce" settlement.