Tenancy By The Entirety Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Tenancy By The Entirety, written in plain English, along with examples of how it is used.
What is Tenancy By The Entirety?
The ownership of the property jointly held by a husband and his wife with same interest and one title.The entire property is held by both of them and the survivor of the both is entitled to full ownership of the property.In this case any deals in the property either sale, purchase or development is done only with the consent of the other partner if alive. The ownership can be altered either mutually or on divorce.
History and Meaning of Tenancy By The Entirety
Tenancy By The Entirety is a form of property ownership available to spouses, in which the property is owned jointly and equally by both spouses. This type of tenancy is only available to married couples, and is recognized in some but not all states within the United States.
The key aspect of Tenancy By The Entirety is that both spouses have an equal interest in the property. This means that neither spouse can sell or dispose of the property without the consent of the other. Additionally, if one spouse passes away, their share of the property automatically passes to the surviving spouse, without the need for probate.
This type of tenancy has its roots in English common law, and was historically used to protect the property of a wife from being sold or seized by a husband's creditors. Nowadays, it is often used as a way to simplify the transfer of property upon the death of a spouse.
Examples of Tenancy By The Entirety
John and Jane own their family home as Tenancy By The Entirety. If John passes away, Jane will automatically become the sole owner of the property without the need for probate.
Tom and Emily are getting married and decide to buy a house together as Tenancy By The Entirety. This means that if either of them passes away, the other will automatically inherit the entire property.
Frank and Sarah are going through a divorce and need to divide their assets. Since they own their home as Tenancy By The Entirety, they will need to come to an agreement about the property or go to court to have it divided.
Legal Terms Similar to Tenancy By The Entirety
Joint Tenancy: Similar to Tenancy By The Entirety, this is a form of property ownership in which all owners have an equal interest in the property. However, joint tenancy is available to any group of individuals, not just married couples.
Tenancy In Common: This is another form of property ownership in which all owners have an interest in the property, but the shares can be unequal. Unlike Tenancy By The Entirety or Joint Tenancy, there is no automatic right of survivorship in Tenancy In Common.
Community Property: This is a property ownership system recognized in several states in which all property acquired during a marriage is considered equally owned by both spouses, regardless of who earned the income to acquire it.