Joint Tenancy by the Entirety in Florida: Asset Protection for Married Couples

When it comes to protecting your family’s assets, married couples in Florida have a unique advantage through Joint Tenancy by the Entirety (JTBE). This form of ownership allows spouses to hold property together as one legal entity, providing strong protection from certain creditors.

At  Preservation Law Firm, our Largo estate planning attorney helps couples understand and utilize JTBE as part of a comprehensive estate and asset protection strategy.

What Is Joint Tenancy by the Entirety?

Joint Tenancy by the Entirety (JTBE) is a form of ownership available exclusively to married couples in Florida. Unlike standard joint tenancy, where co-owners hold individual shares, JTBE treats the couple as a single legal unit. Each spouse owns 100% of the property, and neither can act alone to sell or transfer the asset.

An important benefit of JTBE is the right of survivorship. When one spouse passes away, ownership automatically transfers to the surviving spouse, without the need for probate.

How JTBE Protects Assets

One of the most powerful features of JTBE is its creditor protection. If only one spouse is sued or owes a debt, creditors typically cannot seize assets held in JTBE, since both spouses are considered to own the property together.

For example:

• If a husband is sued for a personal debt, assets held as JTBE (like a jointly owned home or bank account) are generally shielded from collection.
• However, if both spouses are jointly liable for a debt, creditors may pursue JTBE assets.

Recommended Uses for JTBE

JTBE can be applied to a variety of assets, including:

• Bank Accounts: Opening joint accounts as JTBE helps safeguard your financial resources.
• Brokerage Accounts: Investment accounts can be titled as JTBE for added creditor protection.
• Real Estate: Many married couples hold their primary residence and other properties as JTBE to ensure both survivorship and asset protection.

To establish JTBE, both spouses must open the account or take title to property together. You cannot simply add a spouse to an existing individual account.

Special Considerations for Automobiles

While JTBE offers significant protections, automobiles are best owned individually. If you are involved in an accident while driving a car titled jointly, creditors could attempt to reach JTBE assets. By keeping vehicles titled separately, you limit exposure.

To further protect against accident-related liability, couples should consider purchasing an umbrella liability insurance policy with an uninsured motorist rider. Coverage of at least $1,000,000 is recommended, though families with higher-value assets may benefit from policies of $2,000,000 to $5,000,000.

Key Points About JTBE in Florida

• Available only to married couples.
• Both spouses are treated as owning 100% of the asset.
• Provides strong asset protection from the creditors of one spouse.
• Automobiles should not be titled jointly.
• Other creditor-protected assets include retirement accounts, life insurance, annuities, and your Florida homestead.
• Florida is one of only 25 states that recognize JTBE ownership.