Tenancy By The Entirety
What Does Tenancy By The Entirety Mean?
Tenancy by the entirety is a type of concurrent estate in which a married couple owns property together with equal and undivided shares. This means both spouses have complete ownership of the property. This form of ownership includes the right of survivorship, meaning that if one spouse passes away, their share automatically transfers to the surviving spouse. Additionally, neither partner can sell or transfer their interest in the property without the other’s consent.
This arrangement is also referred to as tenancy by entirety or tenancy by the entireties.
Insuranceopedia Explains Tenancy By The Entirety
An example of tenancy by the entirety would be a husband and wife purchasing an old inn together. In this arrangement, each spouse has full ownership of the property, unlike joint tenancy or tenancy in common, where ownership is divided. Tenancy by the entirety treats both spouses as a single legal entity, making it exclusively available to married couples at the time the property title is granted. While this form of ownership is legal for all types of property in about half of U.S. states, some states restrict it to real estate only.
This ownership structure can also have implications for insurance. For example, a wife’s claim might be denied if her husband intentionally damages her personal property covered under a homeowner’s policy. In such cases, the insurer views the couple as a single legal entity, which affects how claims are evaluated.
