| The following article is based solely on individual | | | | tenancy by the entirety as well. Property held in |
| research and should not be taken as legal advice. | | | | tenancy by the entirety cannot be severed by a |
| Tenancy by entirety is otherwise known as a special | | | | partition action filed by one of the parties. If one |
| kind of property ownership that only married couples in | | | | spouse disappears or simply leaves, difficulties in |
| a handful of states may use to their advantage. All | | | | transferring or encumbering the property rise |
| that a married couple needs to do to file for tenancy | | | | exponentially. In essence, anything that involves the |
| by the entirety is to specify in the deed that the | | | | estate and both tenants' participation becomes that |
| property is being conveyed to the couple "as tenants | | | | much more of a chore should one spouse become |
| by the entirety". Both spouses have the right to enjoy | | | | incompetent. For example, transferring ownership to an |
| the entire property, and when one spouse dies, the | | | | adult child would be very difficult for a couple filed |
| surviving spouse gets a title to the property- more | | | | under tenancy by the entirety. This is an important |
| officially known as the right of survivorship. It is similar | | | | area which should be discussed with all residential real |
| to joint tenancy, but is available in only about half the | | | | estate buyers. Since there are certain disadvantages, it |
| states. | | | | should not be used as the "default" tenancy for |
| The main difference between joint tenancy and | | | | married individuals. |
| tenancy by the entirety is that joint tenants may deal | | | | Again, since tenancy by the entirety is a creature of |
| with the property as they wish. If an individual tenant | | | | state law, in order to take advantage of it in a |
| decides to convey his interest in the property, that | | | | bankruptcy action, you would have to use your state's |
| interest is conveyed and the joint tenancy dissolves. | | | | exemptions as opposed to the federal exemptions. |
| With tenancy by the entirety, each tenant owns the | | | | Even then, the exemption will be valuable only if both |
| entire estate thereby preventing either tenant from | | | | spouses do not file for bankruptcy together, and only if |
| acting individually. In return, the property is protected | | | | the filing spouse is solely liable for the debt resulting in |
| from judgment creditors trying to enforce their liens | | | | the lien on the home. |
| against the property. However, if both tenants file for | | | | States where full-fledged tenancy by the entirety is |
| bankruptcy, this advantage is nullified leaving the estate | | | | available: Alaska, Arkansas, Delaware, District of |
| vulnerable to judgment creditors. Note that if the | | | | Columbia, Florida, Hawaii, Maryland, Massachusetts, |
| debtor spouse dies first then the lien cannot be | | | | Mississippi, Missouri, New Jersey, Oklahoma, |
| enforced against the property. On the other hand, if a | | | | Pennsylvania, Rhode Island, Tennessee, Vermont, and |
| debtor spouse survives a non-debtor spouse, the lien | | | | Virginia. States where tenancy by the entirety may be |
| may be enforced against the whole property, not | | | | used for real estate: Illinois, Indiana, Kentucky, Michigan, |
| merely the debtor spouse's original half-interest. | | | | New York, North Carolina, and Oregon. |
| Of course, there are some potential disadvantages to | | | | |