What is “tenancy by the entirety”?
A tenancy by the entirety is a form of ownership, which is very similar to a joint tenancy. However, a tenancy by its entirety is what is called a “concurrent estate” that applies only when the two concurring owners are spouses. Each of them has equal and undivided interest in and rights to the property in question.
Below are some aspects of tenancy by the entirety:
– Like a joint tenancy, this form of ownership also carries a right of survivorship, which means that, if one spouse passes away, entire ownership of the property is transferred to the surviving spouse.
– If one spouse wishes to terminate the tenancy or to sell or transfer the property, he or she would require the consent of the second owner.
– Not all U.S. states recognize this form of ownership.
– Although, usually, both spouses are considered one single legal owner entity, in some cases, property that is owned in this way is exempt from judgements against liabilities or debts attributed to one of the spouses.
– In some jurisdictions, this form of ownership can also apply to bank accounts or investment accounts
– If the spouses divorce, they become tenants in common
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