Asset Protection Tip -- Titling Your Personal Vehicles

Did you know that the Michigan No-Fault Act imposes tort liability for bodily injury on both operators AND owners of motor vehicles? This means that the owner of a motor vehicle is fully liable for an accident -- even if they were not driving.

Married couples can reduce their exposure to liability simply by titling each of their motor vehicles in the name of the spouse who drives it most often. If an accident happens, then only the spouse who owned and drove the vehicle can be named in a lawsuit. Michigan law prevents judgment creditors from seizing a married couple's jointly-owned assets when only ONE of the spouses is subject to a judgment. This law protects the "innocent" spouse from judgments of the other spouse. Therefore, having only spouse on a vehicle title will reduce a married couple's exposure to liability for an accident.

The same idea applies to any vehicle that you own which is frequently driven by another person (a child for example) -- removing your name from the title immediately reduces your exposure to liability for their actions.

So, managing your vehicle titles can be an effective way to protect your assets at almost no cost.