Legal Definitions - Tenancy by the entireties

Tenancy by the Entireties is a unique form of property ownership available exclusively to married couples in certain states. It treats the married couple as a single legal entity, meaning they own the property together as one indivisible unit, rather than as two separate individuals with distinct shares. This type of ownership offers two primary benefits:

• Right of Survivorship: If one spouse passes away, their interest in the property automatically transfers to the surviving spouse without the need for probate or a will. The surviving spouse then owns the entire property solely.
• Protection from Individual Creditors: The property cannot be seized or sold by a creditor to satisfy a debt owed by only one spouse. Both spouses must owe the debt for the property to be at risk.

To sell, mortgage, or otherwise transfer property held in tenancy by the entireties, both spouses must agree and sign the necessary documents.

Here are some examples to illustrate how this works:

• Example 1: Automatic Transfer Upon Death

  Michael and Emily, a married couple, purchase a family home and take title as tenants by the entireties. Years later, Michael unexpectedly passes away. Because the property was held in tenancy by the entireties, Emily automatically becomes the sole owner of the entire house. She does not need to go through a lengthy probate process or rely on Michael's will to inherit his share; the ownership simply vests in her by operation of law.

• Example 2: Protection from Individual Debts

  Sophia and Daniel own a rental property together as tenants by the entireties. Daniel later accumulates substantial personal medical debt from an illness, and the hospital obtains a judgment against him for the unpaid bills. However, because the rental property is held in tenancy by the entireties, the hospital cannot place a lien on the property or force its sale to satisfy Daniel's individual debt. The property is protected because Sophia, the other spouse, is not a party to Daniel's medical debt.