This is unethical practice and you or your husband should report him to the Board of Medical Ethics where you live.
My father is a careerlong member of the ethics committee of the American College of Obstetrics and Gynecology, so I know I am speaking the truth.
It's commonly done and it's been done for a long time. It's called The Husband's Knot.
However, the problem after her tear might not be due to the husband's knot. A lot of women suffer a lot of complications due to tearing, too. I don't think that the final results are always predictable. NotPunny actually got lucky to some extent. Some women suffer from anal incontinence or pain during sex or an inability to sit comfortably from tearing from a large baby. Some women require two or three additional surgeries to correct the end result of tearing and healing improperly or to remove problematic scar tissue. Severe tears just can't be repaired very easily and with a lot of success. A lot of women lose sensation, the ability to control their muscles in the vagina, the anal sphincter, and/or the urethra.
There are a lot of first hand accounts of what it's like to suffer from severe tearing here in the comments:
I'm scared of tearing again -- should I have a c-section? | BabyCenter
(And also a lot of women gave advice who obviously didn't have a severe tear who shouldn't be handing out advice, but who are so adamant about "natural" birth and so anti-doctor that they proselytize to everyone even though they really don't know what they're talking about. It's an epidemic, I'm telling you.
Edit: Well, I'm not so sure about the commonness of the Husband's Knot now. I googled it. Some sites say that a doctor won't do it now without consulting you first, but there are a lot of first hand accounts of women saying that their own doctors told them that he was giving them the "husband's knot" to help them out while they were doing the stitching, without asking first. This article on post-pregnancy sex in Psychology Today also says that it isn't common practice any more. So I guess it just depends on who your doctor is, but it sounds like a lot of doctors still do it, but maybe a lot fewer than they used to. However, I know that scar tissue and healing from episiotomies or tearing can do terrible things and leave women with lasting damage. Even just damage from the stretching and shearing forces of vaginal birth can permanently damage nerves, without actual perineal tearing or an episiotomy. I read a few research studies about that.
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