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Tenants by the Entirety is an unique form of joint ownership in between couples here in Florida that provides a considerable amount of asset protection for any properties owned as Tenants by the Entirety. While roughly twenty states have laws that enable Tenants by the Entirety ownership, state laws differ widely as to which properties can be owned as occupants by the entirety. Only fifteen of the twenty states that permit Tenants by the Entireties ownership attend to some property defense when a possession is owned as Tenants by the Entireties

Florida is special because couples can own genuine or individual residential or commercial property as occupants by the entirety. We always offer the example that a married couple can own a pen in Florida as tenants by the whole. The importance of owning properties as tenants by the whole is that married couples can include a totally free, extra layer of property protection to their possessions. Additionally, because occupants by the totalities is a joint occupancy, if one partner predeceases the other partner, the enduring spouse (the joint tenant) will get the renters by the entireties residential or commercial property without the residential or commercial property travelling through probate.

Table of Contents

How Does Tenants by the Entireties Provide Asset Protection in Florida?
Should I Own a Possession As Tenants by the Entireties, Joint Tenants with Rights of Survivorship, or Tenants in Common?
How to Make a Florida Asset Owned as Tenants by the Entireties.
Which Creditors Can Defeat Tenants by the Entireties Ownership?
FAQs: a list of typical tenants by the entireties concerns we are asked
How Does Tenants by the Entireties Provide Asset Protection in Florida?

Tenants by the Entireties is a non-statutory defense versus lenders here in Florida. Non-statutory just suggests that the exemption is discovered in Florida's typical law. So in Florida, when you own a property as Tenants by the Entireties, both spouses are treated as owning an undistracted 100% interest in the possession.

This 100% ownership interest in the property is different than Joint Tenants with Rights of Survivorship or Tenants in Common since a joint owner would be treated as just owning 50% of the possession (assuming there are only two owners). While it's mathematically impossible for each separate partner to own an undistracted 100% interest in the asset, this 100% undivided interest provides the Tenants by the Entireties possession with creditor protection.

The importance of the Tenants by the Entireties financial institution security is that a financial institution of one partner alone can not sever or reach out and grab a Renters by the Entireties owned possession.

Example: Terry and Jordan are a married couple living here in Florida. Terry is driving around Tampa Bay and occurs to enter an accident with an infamous accident lawyer's kid. The infamous personal injury attorney right away files a lawsuit against Terry and Jordan. Since all of Terry and Jordan's properties are owned as Tenants by the Entireties, the notorious injury lawyer is unable to take any of Terry and Jordan's collectively owned assets because the judgement is just against Terry.

Should I Own a Property As Tenants by the Entireties, Joint Tenants with Rights of Survivorship, or Tenants in Common?

There are 3 forms of joint ownership that are enabled here in Florida:

1. Joint Tenancy with Right of Survivorship. 2. Tenancy in Common. 3. Tenancy by the Entireties.

Joint Tenants with Rights of Survivorship simply indicates that upon the death of one joint renter, the property passes straight to the enduring joint occupant. This is the most common form of ownership between couples in the United States (although you do not have to be wed to use this type of joint occupancy). Joint Tenants with Rights of Survivorship makes sure that the property does not go through probate when one partner dies. However, Joint Tenants with Rights of Survivorship offers no property security for a property.

Tenancy in Common-also referred to as Tenants in Common-means that upon the death of one tenant in common, the asset passes to the departed renter's recipients or heirs. The possession does not pass to the other Tenants in Common. Tenancy in Common likewise offers no possession security for a property.

Caution: A great deal of individuals own properties as Tenants in Common without even understanding the potential risks of a Tenancy in Common. Often times one Tenant in Common will pass away and that Tenant in Common's share of the property will need to travel through probate before a new owner steps into that deceased owner's position. Not only does Tenancy in Common cause probate, however it also can cause future concerns of ownership if a new Tenant in Common assumes ownership that an original Tenant in Common does not desire to own the property with.

As you can see, both Joint Tenants with Rights of Survivorship and Tenancy in Common offer absolutely no property protection for a possession. This is why couples in Florida ought to own all jointly owned possessions as Tenants by the Entireties-married couples will receive a complimentary layer of asset protection not offered by the other kinds of joint ownership.

How to Make a Florida Asset Owned as Tenants by the Entireties

Tenants by the Entireties ownership in Florida requires six "unities." These six unities need to exist for the asset to be treated as owned by Tenants by the Entireties:

1. Unity of Possession (joint ownership and control)