I am not an attorney, but I've had many a conversations about business vs personal assets.
With the sounds of this scummy contractor, I'm sure any capable attorney would easily be able to destroy this guys corporate veil argument as I'm sure he's broken it numerous times. I'd also assume that just by transferring the deed to his wife, specifically because they are still married, more than makes it still in item that could be part of the lawsuit, if needed (provided you can prove he's broken the corporate veil).
I'd speak with your attorney about this if you plan to go that route.