Legal Question in Credit and Debt Law in North Carolina

I would have to see the documents to see how your wife is "named." I don't exactly know what this means in the legal sense. Is your wife just designated as a beneficiary if the mother dies? Or is the account in the name of mother and your wife? If your wife is a joint account holder, does your wife make sure that no money belonging to your wife goes into that account held jointly with her mother?

In answer to your question, just being on one bank account with her mother does not obligate your wife to pay for any of her mother's other bills and the bank or any other creditor of the mother cannot generally come after your wife's assets, like a bank account. This is not a substitute for a legal opinion and I don't know what all is at issue. Generally I can say your wife is not at risk, but there could always be some exception. The only one I can think of would be if your wife is a joint account holder with her mother, the mother somehow owes money to the bank on that account and dies perhaps. In that case, the bank may have some kind of action action against your wife for monies on the joint account. Your wife is not liable for her mother's mortgage and heloc though unless she signed the loan papers agreeing to be responsible.

I would suggest that it would be better for the mother, if she has debts, NOT to have a joint bank account (checking or savings) with anyone. If your wife is on the account only for accommodation purposes (to help pay bills for example) then the mother needs a financial power of attorney which authorizes your wife or some other person to handle banking and other transactions for her in the event the mother becomes incapacitated and cannot do it.

Your wife's mother has bigger issues though.. She seems to be incapable of managing her money and might actually benefit from someone like your wife or perhaps another more fiscally responsible child from taking control and getting t hings in order.