When purchasing real estate in North Carolina as a married couple, understanding how property ownership works is essential. North Carolina law provides specific protections and rights to spouses regarding real property, particularly through a legal framework known as tenancy by the entirety. This type of ownership carries unique benefits and implications, especially in cases of divorce or the death of a spouse.

Tenancy by the Entirety: The Default for Married Couples

In North Carolina, when a married couple purchases real property together, the law automatically assumes they own it as tenants by the entirety unless stated otherwise. This form of ownership offers several key benefits:

• Survivorship Rights: If one spouse passes away, the surviving spouse automatically inherits the entire property without the need for probate.

• Protection from Individual Creditors: A creditor of one spouse alone cannot force the sale of property owned as tenants by the entirety to satisfy individual debts.

• Equal Ownership and Control: Both spouses have equal rights to the property, and neither can sell or transfer their interest without the other’s consent.

Marital Interests in North Carolina Real Property and Divorce

In the event of a divorce, property owned as tenants by the entirety converts into tenancy in common, meaning each former spouse owns a separate and distinct interest in the property. During equitable distribution proceedings, the court will determine how marital property—including real estate—should be divided.

Under North Carolina’s equitable distribution laws, property is classified as either marital, separate, or divisible:

• Marital Property: Acquired during the marriage and subject to division.

• Separate Property: Owned by one spouse before marriage or received as a gift or inheritance.

• Divisible Property: Includes passive income and value changes of marital property occurring after separation but before final distribution.

Courts aim to divide marital property fairly, though not necessarily equally. Factors like each spouse’s contributions, financial circumstances, and the length of the marriage play a role in the final decision.

What Happens Upon the Death of a Spouse?

If one spouse dies while still married, property held as tenants by the entirety passes automatically to the surviving spouse. This means that:

• The property does not have to go through probate.

• The surviving spouse gains full ownership immediately.

• Any debts solely belonging to the deceased spouse generally do not attach to the property.

However, if the deceased spouse had separate real estate holdings, the surviving spouse may have elective share rights, allowing them to claim a portion of the estate under North Carolina inheritance laws.

Consult a Real Estate Attorney

Understanding marital interests in North Carolina real property is crucial when buying, selling, or planning for the future. Whether you are considering purchasing a home with your spouse, facing divorce, or dealing with estate planning matters, consulting an experienced real estate attorney can help ensure your rights and interests are protected.

At K.S. Walker Law Group, we guide clients through real estate transactions, divorce-related property concerns, and estate planning to help safeguard their assets. Contact us today for expert legal assistance tailored to your unique situation.