Florida’s Tenancy by the Entirety Law protects married couples in bankruptcy by making jointly owned assets off-limits to creditors, but only if the debt is owed by just one spouse and not both.
This rule gives couples a significant legal advantage, allowing family homes or shared accounts to stay out of a bankruptcy trustee’s reach when those assets qualify.
However, the process is rarely simple, and what seems like a straightforward rule often hides important exceptions or technical requirements.
For many couples, bankruptcy raises urgent questions about what assets are genuinely safe and which might be at risk. The idea of losing a home or joint savings right when things are already tough can spark real anxiety.
While Tenancy by the Entirety is a strong legal tool in Florida, it only works if every technical detail is met and the nature of the debt fits the statute. Schedule a confidential case assessment with Lewis Roberts bankruptcy lawyer to explore the following legal insights further.
How Florida’s Tenancy by the Entirety Law Protects Married Couples in Bankruptcy
- Tenancy by the Entirety (Florida Statute § 689.15) can protect jointly owned marital property from the individual debts of one spouse during bankruptcy.
- For this protection to be valid, the property must satisfy the “six unities” of possession, interest, title, time, marriage, and survivorship as established under Florida common law.
- This protection does not apply to joint debts where both spouses are liable. A bankruptcy trustee can still pursue these assets to pay joint creditors.
- With my knowledge of Florida’s intricate property and bankruptcy laws, I can help married couples confidently evaluate their assets and work toward protecting their financial future.
What is Tenancy by the Entirety in Florida?
Tenancy by the entirety, as outlined in Florida Statute § 689.15, is a unique form of property ownership available exclusively to married couples in Florida.
This legal structure treats the couple as a single entity rather than two individuals, creating a unified ownership of property.
One of its key benefits is protection from creditors attempting to collect debts owed by only one spouse, ensuring that jointly held property remains shielded under this designation.
Key features of Tenancy by the Entirety include:
- Unified Ownership: The property is owned by the marital unit, not by each spouse individually.
- Creditor Protection: If a creditor has a judgment against one spouse, they generally cannot seize property held as tenancy by the entirety.
- Bankruptcy Shield: This protection extends to bankruptcy cases, preventing the trustee from liquidating the property to satisfy individual debts.
This protection has limits. If both spouses are jointly responsible for a debt, tenancy by the entirety does not shield the property from creditors pursuing that joint obligation. A Florida bankruptcy attorney can help evaluate how this ownership structure applies to your specific situation.
What Assets Can a Tenancy by the Entirety Lawyer Help Protect During Florida Bankruptcy Proceedings?
A lawyer experienced in Florida bankruptcy and property laws can play a critical role in protecting assets held as tenancy by the entirety. By analyzing your specific situation, they can identify which assets qualify and ensure the necessary legal standards are met.
How a lawyer can help with different asset types:
Real Estate: A lawyer can review your property deed to confirm it meets the requirements for tenancy by the entirety. They can also address any gaps in documentation and ensure the property is properly classified to maximize protection under Florida’s homestead exemption.
Bank and Financial Accounts: Legal professionals can examine account agreements to verify they reflect Tenancy by the Entirety ownership. They can also prepare the necessary evidence to demonstrate this intent during bankruptcy proceedings, reducing the risk of trustee challenges.
Personal Property: For vehicles and other tangible assets, a lawyer can review titles and other documentation to confirm they meet the legal criteria for tenancy by the entirety. If issues arise, they can take steps to correct or strengthen the documentation to protect these assets from creditors.
By addressing these details, a Florida bankruptcy lawyer helps make sure your assets are positioned for the strongest possible protection during bankruptcy. Their guidance can make the difference between safeguarding your property and leaving it vulnerable to creditors.
Florida Tenancy by the Entirety Law and Bankruptcy FAQs
What happens if we have joint debts?
If you and your spouse have joint debts (like a co-signed car loan or a joint credit card), the bankruptcy trustee can liquidate property held as tenancy by the entirety to pay those specific joint creditors. However, the protection is only effective against debts owed by one spouse individually.
Can we transfer property into tenancy by the entirety right before filing bankruptcy?
Transferring property to create tenancy by the entirety shortly before filing for bankruptcy could be considered fraudulent. A bankruptcy trustee has the power to undo transactions that appear to be an attempt to hide assets from creditors. Any such planning should only be done with careful guidance from a legal professional.
What happens to tenancy by the entirety property if we get divorced?
A divorce legally severs the “unity of marriage.” When that happens, property held as tenancy by the entirety automatically converts to another form of ownership called “tenants in common.” Each ex-spouse owns a separate 50% share in this structure, and the creditor protection is lost.
Does tenancy by the entirety protect against federal tax debt?
Tenancy by the Entirety generally does not protect against federal tax liens. If either spouse owes federal taxes, the IRS can typically place a lien on and seize property held as tenancy by the entirety, regardless of whether the tax debt is individual or joint.
When should I talk to a lawyer about bankruptcy in Florida?
You should consult a lawyer as soon as you start considering bankruptcy. Early legal guidance can help address tenancy by the entirety issues, protect your assets, and ensure proper documentation to avoid complications during the process.
Lewis Roberts Can Help You Understand Bankruptcy and Tenancy by the Entirety Laws. Schedule a Confidential Case Evaluation to Explore Your Legal Rights and Options.
Protecting your family’s assets during Chapter 7 or 13 bankruptcy in Florida requires more than just understanding the law. It takes a thoughtful strategy tailored to your unique situation.
Lewis Roberts works with married couples to navigate the challenges of Florida bankruptcy proceedings and position their property for maximum protection provided under Florida law.
Take the first step toward securing your financial future. Call (407) 749-0080 or complete a brief online contact form to discuss your options with an experienced Florida bankruptcy attorney.
Attorney Lewis Roberts
The weight of debts that one cannot pay carries financial stress into every waking moment. It is time for this to end. Lewis Roberts, PA, offers solutions to relieve these worries. With over 20 years of experience in helping individuals overcome the burden of debt, bankruptcy attorney Lewis Roberts presents a range of options tailored to each unique situation. Clients can trust his advice on any matter related to debts, as he identifies appropriate options and explains the paths to debt relief clearly and carefully. This ensures that clients make the best decisions for their future. [ Attorney Bio ]
