If my husband's name is the only one on the deed, is it really his house?
Full Question:
Answer:
Homestead laws were generally designed to protect the home from creditors, provides the right of occupancy given to a surviving spouse, minor children, and unmarried children of a deceased owner and also afford reduced property tax treatment. When people use the term "homestead exemption" they may be referring to the tax exemption or reduction, or the exemption from debts or execution for the payment of debts.
In New Jersey there is no homestead exemption provided, but there is an exemption for personal property of up to $1,000. New Jersey Statutes, Annotated, § 2A: 17- 1 and 2A: 17-17
If one spouse places his or her name on the title to a piece of property, then generally speaking that property is his or her asset. This is often done to protect the home from potential creditors who may try to pursue an action against the other spouse. Also, many times it is the credit worthiness of the one spouse who is able to obtain financing for the purchase.
While the property may not be used by the other spouse (who's name is not on the deed) as collateral for a loan and is not an asset for purposes of net worth calculation, the property may be seen as marital property in the event of a divorce, if it was purchased during the marriage. This means that a divorce court may see the home as a marital asset to be distributed equitably despite how title is held.
In New Jersey, a homestead interest is created by joint possession of real estate by a husband and wife which is used as their principal residence. New Jersey Code §3B-28-3. If a spouse was going to borrow money to purchase property, the signature of the other spouse would not be necessary for that loan. However, if someone wanted to impose a lien on the property, it would need the signature for joint possession of the principal marital residence.
