Investing in Property
When planning a real estate investment as a married couple, location of your investment plays a big role for asset protection. In New Jersey, the property held by the entireties (as Husband and Wife) is protected from partition sale by creditors, but the interest of a debtor-spouse is subject to levy by that spouse’s judgment-creditor (meaning that lien will attach to the property but the non-debtor spouse cannot be evicted) ( Freda v. Commercial Trust Co., 118 N.J. 36a). In a few states, Florida being one of them, assets held by the entirety are not subject to attachment by creditors of one spouse. Hurlbert, 560 So.2d at 1278-79; Miller v. Rosenthal, 510 So.2d 1127.
It goes without saying that purchasing and holding any property as a limited liability entity is superior in terms of creditor protection to outright ownership by individuals.