real estate
Tenancy by the entirety
The acquisition of property by a married couple throughout the course of their marriage that is held in joint ownership in certain jurisdictions. The surviving spouse automatically takes ownership of the property in the event that one of them passes away.
Tenancy by the entirety is a special form of property ownership that's only available to married couples. It's quite unique because it treats both spouses as a single legal unit when it comes to property ownership.
Here's what makes it distinctive. When a married couple owns property as tenants by the entirety, each spouse owns 100% of the property, not 50/50 like you might think. This means neither spouse can sell or transfer their interest in the property without the other's consent. It's essentially a "both or nothing" situation.
One of the most important benefits of tenancy by the entirety is the protection it offers against creditors. If one spouse has debts, creditors generally can't place a lien on or force the sale of the property to satisfy those individual debts. Only debts that both spouses are responsible for can affect the property.
There's also an automatic right of survivorship. If one spouse passes away, the surviving spouse automatically becomes the sole owner of the property as the deceased spouse's interest can't be willed to someone else. This happens outside of probate, which can save time and money.
It's worth noting that this form of ownership isn't available in all states, and some states that do allow it might have specific requirements or variations in how it works.