Tenancy By the Entirety

Form of individual (versus corporate or partnership) co-ownership in which ownership passes automatically at the death of one co-owner to the surviving co-owner. The person with a TBE co-ownership interest lacks the power to freely dispose of that interest by Will. In this respect, it is similar to Joint Tenancy With Right of Survivorship (JTWROS). Unlike JTWROS, however, the TBE ownership interests are limited to ownership by two persons who are husband and wife at the time the property is acquired. If the married couple then divorces, the form of ownership automatically changes to Tenancy in Common (TIC). Generally, TBE ownership is limited to real estate, although about a dozen states permit TBE ownership of personal property.

Joint ownership of property by husband and wife, recognized in some states. Each has equal rights of possession and enjoyment, and right of survivorship when the other spouse dies. Although similar to joint tenancy, the most common form of property ownership by married couples, tenancy by the entirety treats the estate as a unit, which means that neither spouse can sell assets without the other's consent. Also, creditors cannot force the sale of property to satisfy debts of either spouse. The surviving spouse inherits the entire estate. See also Community Property; Joint Tenants With Right of Survivorship; Tenancy in Common.

An Estate that exists only between husband and wife with equal right of Possession and enjoyment during their joint lives and with the Right of Survivorship-i.e., when one dies, the property goes to the surviving tenant. Recognized in some states.
Example: A married couple owns property as tenants by the entirety. Neither can convey his or her part of the property during their lives unless the other consents. A creditor of only one spouse is generally prevented from claiming property held by the other spouse in tenancy by the entirety. Divorced spouses become tenants in common. See Tenancy in Common.

A type of concurrent estate in real property held by a husband and wife whereby each owns the undivided whole of the property, coupled with the right of survivorship, so that upon the death of one, the survivor is entitled to the decedent's share.

A tenancy by the entirety allows spouses to own property together as a single legal entity. Under a tenancy by the entirety, creditors of an individual spouse may not attach and sell the interest of a debtor spouse: only creditors of the couple may attach and sell the interest in the property owned by tenancy by the entirety.

There are three types of concurrent ownership, or ownership of property by two or more persons: tenancy by the entirety, joint tenancy, and tenancy in common. A tenancy by the entirety can be created only by married persons. A married couple may choose to create a joint tenancy or a tenancy in common. In most states a married couple is presumed to take title to property as tenants by the entirety, unless the deed or conveyancing document states otherwise.

The most important difference between a tenancy by the entirety and a joint tenancy or tenancy in common is that a tenant by the entirety may not sell or give away his interest in the property without the consent of the other tenant. Upon the death of one of the spouses, the deceased spouse's interest in the property devolves to the surviving spouse, and not to other heirs of the deceased spouse. This is called the right of survivorship.

Tenants in common do not have a right of survivorship. In a tenancy in common, persons may sell or give away their ownership interest. Joint tenants do have a right of survivorship, but a joint tenant may sell or give away her interest in the property. If a joint tenant sells her interest in a joint tenancy, the tenancy becomes a tenancy in common, and no tenant has a right of survivorship. A tenancy by the entirety cannot be reduced to a joint tenancy or tenancy in common by a conveyance of property. Generally, the couple must divorce, obtain an annulment, or agree to amend the title to the property to extinguish a tenancy by the entirety.