Don't Live In Fear Of Being Sued

Janet and her husband own a $600,000 home and owe $259,000 on it. They could pay it off completely now. Should they pay the home off before the four-year homestead law mark?

QUESTION: Janet in Dallas and her husband own a $600,000 home and owe $259,000 on it. They could pay it off completely right now and still have money in their emergency fund. They are self-employed and have been sued many times. To protect themselves, should they pay the home off before the four-year homestead law mark?

ANSWER: If you get sued, they could get the $259,000 anyway if you lose the lawsuit. I’m paying off the house. I just don’t live much of my life in fear. I want to be wise, but I’m not going to be fear-based. I think they can get your money anyway, so I’m paying it off.