Asset Protection for Your Home
If you bought a home together with your significant other in North Carolina prior to your marriage, you may need to re-convey your home to yourselves as a married couple. The reason for this is the asset protection provided by North Carolina’s tenancy by the entirety form of property ownership.
What is tenancy by the entirety? Tenancy by the entirety is a special form of property ownership only for married couples. The advantage of owning your home as tenants by the entirety is that North Carolina law provides asset protection for property owned as tenants by the entirety from the creditor of only one spouse except for federal tax liens. To create a tenancy by the entirety, you must be married at the time the property was conveyed to you. If you were not married at the time you purchased your property, you do not own it as tenants by the entirety. To change your current property ownership from tenants in common or joint tenants with rights of survivorship to tenants by the entirety, you and your spouse should execute a new deed conveying the property to yourselves as a married couple. In addition to protection from the creditors of one spouse, tenancy by the entirety ownership also provides rights of survivorship between spouses.
Why it matters? If you are in a profession that has the potential for legal liability, your home could be at risk from creditors if you are sued individually. The creditors of only one spouse cannot reach assets titled in the names of both spouses as tenants by the entirety. Therefore, for high-risk professions, it is especially important to have the asset protection for your family home that tenancy by the entirety provides. If you have questions about tenancy by the entirety or asset protection, contact Nancy at 704-887-5242 to schedule a consultation.
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DISCLAIMER: The contents of this post are for educational purposes only. The information offered in this post does not constitute legal advice and reading the information does not create an attorney client relationship with Nancy Roberts or the Law Office of Nancy L Roberts PLLC Firm. Before taking any action, you should always seek legal advice from an attorney you hire, who advises you based on your specific facts, circumstances, situation, and the appropriate governing law.