What is Tenants by the Entirety?

Tenants by the entirety is a unique form of property ownership reserved for married couples in certain states, including Florida. It considers the couple a single legal entity, granting both spouses equal and undivided property ownership. This form of ownership includes the right of survivorship, meaning that if one spouse passes away, full ownership automatically transfers to the surviving spouse without the need for probate.

The primary purpose of tenants by the entirety is to provide married couples with a secure and unified way to own property, reflecting the legal view of marriage as a single unit. This structure offers significant protections, particularly from individual creditors, ensuring the marital home remains safeguarded. By simplifying the transfer of ownership upon a spouse’s death and offering financial stability, tenants by the entirety support the joint legal and economic interests of married couples, offering both security and peace of mind.

For example, John and Sarah purchased a home and took title as tenants by the entirety, a form of ownership exclusive to married couples. This arrangement gives both spouses equal and undivided interest in the property. If John passes away, Sarah automatically becomes the sole owner without the need for probate, ensuring a smooth and immediate transfer of ownership. Sarah is also protected from individual creditors of either John or Sarah, offering added financial security during their marriage and for the surviving spouse.

Pros:

• Offers protection from individual creditors of one spouse.

• Avoids probate, ensuring seamless transfer of ownership.

• Both spouses must agree to sell or encumber the property, promoting joint decision-making.

Cons:

• Limited to married couples.

• Joint debts can still result in creditor claims against the property.

• Requires the consent of both spouses to sell or refinance, which could be restrictive.

Tenants by the entirety offers seamless property transfers between spouses while offering strong creditor protection. It’s a popular option for married couples looking to safeguard their home.