Freda v. Commercial Trust Co

In Freda v. Commercial Trust Co., 118 N.J. 36, 570 A.2d 409 (1990), the Court agreed that "under principles of equitable distribution, a wife may properly receive the marital home as part of her share of the marital assets." Id. at 46, 570 A.2d 409. The question was what effect did a mortgage on the husband's interest in the tenancy by the entirety, recorded and perfected long before the judgment of equitable distribution, have on the judgment transferring title to the wife. The Court held that such prior liens against the husband cannot be destroyed by the transfer of the marital home from the debtor spouse to the non-debtor spouse. Ibid. Rather, the wife takes the property subject to the judgment. The judgment creditor's rights, however, are subject to the wife's right of survivorship. Id. at 48-49, 570 A.2d 409.