Asset protection problems with joint loan?

Just wondering what problems could present with both spouse names on loan for an investment property with one name on title? I know that if there is default on payments then assets owned by both are at risk.

But what about if the tenant sues if they have an accident in the property and insurance doesn't cover it - then would assets of both partners on loan be at risk or only those of the spouse whose name is on the title?

Are there any other general risks to be aware of?

 

Constructive and resulting trusts. The non-legal owner could be deemed to be an owner, especially if they have paid the deposit and the loan.

Also consider the asset protection issues on death and family law.

 

Thank you for your response Terry. So reading the definition of these it seems it would likely be deemed a resulting trust if my name is added to the mortgage but not title. This is to refinance. Currently only my husbands name is on title and current mortgage. The mortgage repayments come out of our joint transaction account. So would this existing situation likely be considered a constructive trust already?

Back to the scenario where a tenant decides to take legal action- could they then take action against me as well if a constructive or resulting trust is considered to be in place?

 

Some attacking could run the constructive trust/resulting trust argument if you are paying your husband' loan.

If tenant injures themselves they will sue the landlord which is your husband. If he is bankrupted owing money you could potentially be pursued too as an owner. Very unlikely I think.