They Told Me That I Had to Put the Title in Both Names

I hear this comment at least four times a year. Apparently some lenders are telling North Carolina real estate purchasers that if they are married the property they buy must be titled in the name of both husband and wife. NOT TRUE.

While it is true that a married person in NC cannot generally purchase property with out some cooperation or signature from their spouse the public policy behind this is geared at providing a spouse knowledge of new indebtedness. Thus, if you buy a house without creating any debt your spouse will not have to sign any documents at the closing and his name does not have to appear on the deed/title. If you buy the property through the lender then your spouse will need to sign several documents acknowledging the debt.

It is important to recognize your spouse can still acquire a "marital interest" in the property that you have bought even if your spouse's name does not appear on title. The names on a title are not dispositive as to what interest each spouse will have in a separately titled property should a couple divorce.

Finally, there are economic and legal reasons why you should title your property in the name of Husband and Wife (tenants by the entirety). A discussion of this issue is for another day and another time.