Ah! A statement that it's homework! Good! This means that I won't give you hell, or ignore the post. Unfortunately it also means I'll only ask questions -- but hopefully they'll be helpful questions.
Such a number format would make sense in some cases - as soon as you get off the beaten path of microprocessors and into FPGA design anything can happen.
Is that the least-complicated way to do it (this is a true question -- I don't know)? When you add things by hand you use a sign + magnitude notation -- do you convert to 9's complement, add, wrap the carry, then convert back to sign + magnitude, or is there something else you do?
Check out the 74181, by the way.
This is a 1's complement thing, isn't it? Is your last carry ever affected by your first carry? If so, what happens to your circuit?
If you came up with it I think you already know the answer to that.