Q: I executed a new deed adding my wife in NC last year creating TBE. She is now being sued by Discover. Is the house safe?

A: North Carolina has long recognized the common law creation and enforcement of the tenancy by entirety concept. Here's a good UNC law review article tracing its history. extension://elhekieabhbkpmcefcoobjddigjcaadp/https://scholarship.law.unc.edu/cgi/viewcontent.cgi?article=2123&context=nclr

Your home should be "safe", however, be aware that there are also "fraudulent transfer" laws that upon the appropriate facts can "reach back" to overreach or ignore transfers that happen within 2 years, or perhaps four. (Those laws should not be applicable under your facts).

A: You are correct, however, if Discover gets a judgment against her and she does not pay off or resolve the judgment before you die, the judgment automatically becomes a lien on the house. Judgments are enforceable for 10 years, and are easily renewed for a second 10 year period. Your wife needs to take steps to resolve the debt or else it can cause unpleasant surprises years later. There is no requirement that any judgment creditor actively pursue post judgment enforcement and many people completely forget about judgments for debt until they get sued again 10 years later. Post judgment interest in North Carolina is 8% per year, so even a small judgment can increase dramatically in 10 years. Discover is one of the creditors that is getting pretty tough to "settle" with, so don''t expect to be able to resolve this for pennies on the dollar.