Angell, Trustee v. Sullivan

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF NORTH CAROLINA
WILMINGTON DIVISION
IN RE:
JAN ELIZABETH SULLIVAN Case No.:
04-03325-8-JRL
JAMES B. ANGELL, Trustee
Plaintiff,
v. Adversary Proceeding No.:
05-00052-8-AP
DONNA Y. SULLIVAN
Defendant.
_____________________________________________________________________________
ORDER
This matter is before the court on the supplemental exhibit filed by the plaintiff. In an order dated
March 17, 2006, the court deferred ruling on the plaintiff’s motion for summary judgment pending the
filing of the exhibit.
The exhibit is a divorce decree entered on September 25, 2003 by the district court judge of
Brunswick County, North Carolina. The decree grants the debtor an absolute divorce from her husband,
Roy L. Sullivan. On November 28, 2003, the debtor and Mr. Sullivan transferred their real property in
SO ORDERED.
SIGNED this 05 day of April, 2006.
________________________________________
J. Rich Leonard
United States Bankruptcy Judge
____________________________________________________________
Case 05-00052-8-JRL Doc 43 Filed 04/05/06 Entered 04/05/06 17:04:55 Page 1 of 2

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Winnabow, North Carolina to his daughter, the defendant. The debtor and her former spouse had held
the property as tenants by the entirety.
When a husband and wife hold property as tenants by the entirety in North Carolina, the estate
can only be severed by death, absolute divorce or a voluntary conveyance by the spouses. See Hagler v.
Hagler, 319 N.C. 287, 292 (1987); Shores v. Rabon, 251 N.C. 790, 793 (1960). Upon obtaining a
divorce, the former spouses own real property as tenants in common. Hagler, 319 N.C. at 292.
This court determined in its March 17, 2006 order that the debtor’s transfer of real property to the
defendant was a preferential transfer pursuant to 11 U.S.C. § 547. As the transaction occurred over two
months after the debtor and Mr. Sullivan’s divorce, the tenancy by the entirety was severed before the
preferential transfer. Accordingly, the plaintiff may recover the debtor’s interest in the real property
transferred to the defendant. The plaintiff’s motion for summary judgment is granted.
“END OF DOCUMENT”
Case 05-00052-8-JRL Doc 43 Filed 04/05/06 Entered 04/05/06 17:04:55 Page 2 of 2