Florida law extends tenancy by the entireties ownership protection to both real and personal property

As a married couple in Florida, you may not be aware of a simple and limited form of asset protection through tenancy by the entireties. This allows you and your spouse to both own undivided interest in your assets with a right of survivorship. Attorney Kabel of The Law Offices of Gregory W. Kabel, P.A. is dedicated to designing thoughtful and creative strategies for your estate plan. We carefully review your unique situation, inventory the assets you already possess and review any property you are planning to acquire to determine whether this strategy is your best option.

What is tenancy by the entireties?

Most couples hold title in their joint property as joint tenants with rights of survivorship, which offers no protection from creditors. That is not the case in tenancy by the entireties, which is a form of ownership eligible to married couples only. In Florida, the following must be true in order to qualify for this form of ownership:

• Both parties own and control the asset.
• Interest in the asset is equal for both parties.
• Interest in the asset must have come from the same source at the same time.
• The couple must have already been married when they acquired the asset.

With this type of ownership, each spouse owns the entire asset, rather than a share or a divisible part. This means creditors cannot go after this asset if only one spouse is the debtor. They can only attach the asset if both you and your spouse are jointly liable for the debt.

Potential difficulties with tenancy by the entireties

Though tenancy by the entireties is a form of asset protection, it has its limitations:

• Paperwork errors – It’s important that you and your spouse clearly assert your desire to title your assets in this manner. If you accidentally check the box for survivorship on a financial account application, you have effectively opted for joint tenancy with rights of survivorship over tenancy by the entireties.
• Joint debtors – If both you and your spouse are in debt on a loan together, no protection exists against your mutual creditor.
• Death of a spouse – The protections don’t survive death.
• Statutory limitation – This option is available to married couples only, and you must have both obtained the property together while you were married.

Discuss tenancy by the entireties and other asset protection solutions with a skilled Fort Lauderdale estate planning attorney

At The Law Offices of Gregory W. Kabel, P.A., trust us to clearly explain tenancy by the entireties, pros and cons, and all other viable options for asset protection. Contact us online or call our Fort Lauderdale office at 954-761-7770 for confidential legal counsel on this and other estate planning matters. We serve the Fort Lauderdale, Wilton Manors and all of Broward County areas.