Title Tale: Tenancy by the Entirety

Written By: Mylene Marcelo, Title Manager/Title Officer

When a couple gets married, the assets owned by the married couple will depend on the different rules of the different states where they live in. There are some states which recognize the concept of tenancy by the entirety and there are some that do not. Tenancy by the entirety or TBE is a type of ownership only available to married spouses.

When Harry met Sally and decided to get married in New York, they will have to meet certain conditions for TBE in order to apply to their property. They will have to be married when they acquired the property. They will also need to own and possess the property and will need to have interest equally. Both of their names should be listed on the same deed and must hold title to the property at the same time. These conditions comprise the unities of time, title, interest, possession and marriage and they all must be met before an asset can fall under the dominion of TBE.

How does TBE end? It can be by gifting the property to another party, by divorce or by death. In some states like Virginia and Florida, TBE offers debt protection when a spouse dies as long as they were married and never divorced. ARS will normally require an executed Continuous Marriage Affidavit from the surviving spouse and proof of death. The legal document that ARS will accept as proof of death will be an original or certified copy of the death certificate. Not all states will offer TBE protection such as New York, New Jersey and Pennsylvania to name a few.

TBE is a large concept that needs to be discussed further, and it is subject to the state’s recognition and specific laws. Since it varies from state to state and every situation is different, it is best to contact our Underwriting staff equipped with the knowledge and experience in dealing with any TBE issues that may arise in your transaction.