When a married couple owns property as tenants by the entirety, divorce can complicate ownership. At JeffMcKnightLaw, we frequently face this critical question from clients. What happens to the house? Will it be sold, shared, or assigned to one partner? Discover how we, experienced divorce lawyers, help you navigate this complex situation and protect your interests.
As stated in legal guides, when a married couple who owns property as tenants by the entirety divorces, the ownership converts to a tenancy in common. Each person then owns an undivided half of the property. They can sell their share or agree on new terms for ownership.
What is Tenancy by the Entirety?
Tenancy by the Entirety provides a unique form of property ownership exclusive to married couples, offering protection against individual creditors.
In short, in this type of ownership, both spouses share the whole property together, not as separate parts. If one spouse dies, the other automatically inherits the entire property.
This arrangement, called tenancy by the entirety, includes the right of survivorship. That means if one spouse dies, the other becomes the sole owner without needing any extra steps. This can be comforting for couples because it ensures the surviving partner will have the home.
Essentially, another benefit is that creditors of one spouse usually cannot force the sale of the property for that spouse’s debts. This protects the home if one partner has significant debts.
However, not all states allow tenancy by the entirety, so couples should check local laws to see if they can use this type of ownership.
Impact of Divorce on Joint Ownership
Divorce can lead to complex legal and financial challenges in joint ownership, often necessitating the sale or redistribution of shared assets.
Divorce can make splitting up property messy and stressful. When a couple shares things like houses or valuable items, deciding who gets what can cause fights.
Money issues come into play too. One partner might not be able to afford their share after the divorce. This might mean they need to buy out the other person or sell off the property, which can affect both of them financially, especially if the property has gained value.
Emotions also run high during a divorce. Feelings like anger, sadness, or bitterness can make it hard for the ex-partners to talk and make decisions about their shared stuff. This emotional strain adds another layer of difficulty to dividing their property.
So, divorce can make dealing with shared property tough, financially tricky, and emotionally draining. Couples should seek help from legal and financial experts to handle these challenges as smoothly as possible.
Legal Steps to Divide the Property
To divide property, the initial crucial step involves accurately valuing all assets and liabilities.
Start by figuring out what property each person owned before the marriage and what’s shared. Check if there’s a prenuptial agreement. Make a list of all property and debts. Decide how to fairly split everything. If you’re unsure, talk to a lawyer.
In short, file a request in court to divide the property. Go to mediation or court hearings to settle any disagreements. Get a court order to finalize the split. Update any titles and deeds to show who owns what now. Review and change any estate planning documents if needed.
Rights and Obligations After Divorce
Divorce grants each individual specific rights and obligations, such as child custody and support responsibilities, which must be meticulously adhered to.
When people get divorced, they have to deal with things like child support, alimony, who gets custody of the kids, and how to divide their stuff. Both sides should get a fair share of the property and money, and they both have the right to keep seeing their children. If one side isn’t keeping their promises, the other can go to court.
Each person must follow the rules set out in the divorce agreement. When it comes down to it, this means paying child support or alimony on time, sticking to custody plans, and splitting things fairly. If they don’t, they could face fines or even jail. It’s important for both people to talk to each other and cooperate to make sure everyone’s rights are honored and promises are kept. Sometimes, they might need help from a mediator or a lawyer to settle disagreements and make sure the divorce agreement is followed.
Common Outcomes in Property Division
Property division often reveals that retirement accounts are among the most contested assets in a divorce.
There can be different results. Sometimes, a couple might agree to split their money and belongings equally. This means each person gets half of everything they own together, like houses, cars, bank accounts, investments, and so on.
But the split isn’t always equal. Sometimes, one person might get more because they contributed more money during the relationship, took on more caregiving duties, or have greater needs for the future. This means one person might end up with a bigger share of the assets.
If the couple can’t agree on how to divide their property, a court might have to step in and decide for them. The court will look at things like how long the relationship lasted, each person’s financial situation, and the needs of any children to decide what’s fair.
Rounding it Up
When a married couple who owns a property as tenants by the entirety divorce, the property usually remains with both parties until a formal agreement is reached.
What JeffMcKnightLaw is recommending to get is, if the couple decides to sell the property, they must do so together and divide the proceeds accordingly. This unique form of ownership offers protection from creditors and ensures that both spouses have a stake in the property.
