Jensen v. Montemoino (In re Montemoino), 491 B.R. 580

Debtor and non-filing spouse owned sale proceeds of real property as tenants by the entirety; proceeds deposited in spouse's name.
Debtor filed for Chapter 7; Trustee (creditor of only Debtor) pursued fraudulent transfer claim to recover 50% of proceeds.
New Jersey enacted N.J. Stat. §§ 46:3-17.2 to 46:3-17.4 in 1988 to treat certain personal property as held in entirety.
Deed describing spouses as 'Manuel Montemoino and Elsie Montemoino, his wife' created tenancy by the entirety for real property.
Check for sale proceeds payable to 'Manuel Montemoino and Elsie Montemoino' and deposited solely in non-debtor spouse’s account.
Court must decide if New Jersey law allows a creditor of one spouse to reach entireties property.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Can a creditor of one spouse reach entireties proceeds?	Trustee contends proceeds are debtor-spouse property.	Proceeds are held by entirety and immune to one-spouse creditor.	No reach; proceeds treated as entireties property immune to single-spouse creditors.
Are the sale proceeds property of the estate for exemptions?	Debtor may exempt 50% of proceeds under § 522(b)(3)(B).	Proceeds were not estate property due to pre-petition transfer.	Not applicable; proceeds not property of the estate at petition.
Do New Jersey 1988 amendments permit creditor protection for entireties personal property?	Law should allow creditors to reach entireties property.	Statutes protect entireties assets and bar single-spouse creditor claims.	Statutes shield entireties property from single-spouse creditors.

King v. Greene, 30 N.J. 395 (N.J. 1959) (prior to statutes, judgment creditors could levy survivorship rights)
Newman v. Chase, 70 N.J. 254 (N.J. 1976) (one-spouse creditor could reach entireties and create tenancy in common)
Freda v. Commercial Trust Co. of New Jersey, 570 A.2d 414 (N.J. 1990) (pre-statute decision; recognized protection of entireties but limited by timing)