Simple English definitions for legal terms
Read a random definition: economic earnings
An estate by entirety is a type of property ownership that only applies to married couples. When a married couple buys property together, they both own an equal share of it. If one spouse dies, the other automatically gets their share without having to go through a legal process. This type of ownership also protects the property from creditors if only one spouse owes money. However, both spouses have to agree if they want to sell or transfer the property. If the couple gets divorced or both agree, the estate by entirety can be dissolved and the property ownership changes to tenants in common.
An estate by entirety, also known as tenancy by the entirety, is a type of property ownership that is only available to married couples. When a married couple purchases property together, they each have an equal and undivided interest in the joint property. This means that if one spouse dies, the surviving spouse automatically absorbs their interest without the need for a probate process. Additionally, creditors cannot attach liens on jointly owned property if the debt belongs to only one spouse.
For example, if John and Jane are married and purchase a house together as an estate by entirety, they each own 50% of the property. If John were to pass away, Jane would automatically become the sole owner of the property without having to go through probate.
However, there are some restrictions to estates by entirety. Even if one spouse contributes more money towards the property's purchase, they still own the property equally and undivided. This means that one spouse cannot grant their share in the property to an heir in a will, as the surviving spouse would automatically gain total ownership of the property. Additionally, one spouse cannot transfer their interest in the property without the approval of the other.
While estates by entirety share many features of a joint tenancy, they are dissolved more easily. They can be terminated by one spouse's death, divorce, or by the agreement of both spouses. At this point, the owners become tenants in common.