HOMEBUYERS PROTECTION AGAINST CREDITORS?

First time homebuyers often ask us whether there is a way to protect themselves and their home against creditors.  Do you know what it is?  There is a special tenancy or type of property ownership that is available only to married couples.  This is called a tenancy by the entireties.  Husband and wife own the property as one person, each possessing their right to the undivided whole, and each retaining a right of survivorship.  Upon the death of one spouse, the title automatically passes to the survivor without probate or other action.  Neither spouse can sell or encumber the property without the other’s consent, nor can either dispose of their interest alone. Creditors of the other spouse cannot reach the property held in a tenancy by the entireties to satisfy the debts of the other so long as the debt is not jointly owed by both husband and wife.

 

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