The consent of each is needed to sell or develop it. [1] A petition seeking reconsideration was filed by Olson, but was never ruled upon. She is an adjunct professor at Connecticut State Colleges & Universities, Maryville University, and Indiana Wesleyan University. A conveyance to husband and wife is presumed to create a tenancy by the entireties. We are asked to review the orders of the Court of Common Pleas of Philadelphia County denying a petition to intervene and petition to dissolve an attachment by Elizabeth Q. Olson and Robert P. Olson, respectively. The wife and nephews each filed exceptions which were denied. In this instance, the property could be "marital property" (if acquired during your marriage) in a divorce proceeding, but if only his name is on the deed, he is free to do with the property as he wishes. In addition, the record indicates that Robert Olson had a thorough understanding of the effects of titling property as husband and wife. Homestead Exemption - up to $25,150. You can learn more about the standards we follow in producing accurate, unbiased content in our. 0000008809 00000 n b. Does not protect the property from claims against shared debts. We also reference original research from other reputable publishers where appropriate. Separate Property: A married person who individually holds the title without a spouse. Tenants by the entirety are allowed only between spouses. Since property held in an entireties estate is held by each spouse in the whole, neither spouse can unilaterally sever the estate. The Court held that the presumption that the husband and wife held the property as tenants by the entirety was rebutted by finding that the phrase "all as tenants-in-common" was intended to create a tenancy in common among all of the grantees and not to treat the husband and wife as one entity taking title by the entireties. 170, and Act of June 8, 1893, P.L. The law does not afford protections when one spouse fraudulently transfers their own individual property to a tenancy by the entireties simply as a means to avoid their own individual creditors. 80, 602 A.2d 1317, 1319-21 (1991). In ISN Bank v. Rajaratnam3, the Superior Court of Pennsylvania reminded parties of just how powerful the entireties estate is, and of how mindful creditors must be if they intend to execute against entireties property. i Pennsylvania Courts have . In the case of a conveyance to a husband and wife, a tenancy by the entirety is the default type of ownership. You already receive all suggested Justia Opinion Summary Newsletters. A conveyance to husband and wife is presumed to create a tenancy by the entireties. In the alternative, Olson contended that only one-half of the joint account funds were subject to attached since suit was instituted against Mr. Olson only. Some states may limit tenancy to entirety to real estate only, or only to homestead property. This loan was personally guaranteed by Mr. Rajaratnam. We find such proof neutralized by the language recited in Holmes' Estate, supra (that the marital status and not the terms appearing in or omitted from the instrument-creating document is determinative of whether a tenancy by entireties exists) and Brose's Estate, supra (property registered in the name of two persons who are husband and wife creates a tenancy by the entireties "irrespective" of whether it is "denominated a joint account or a joint tenancy"), the language of the latter being cited with approval in the 1968 decision of our Supreme Court in Cohen, supra. [2]Constitution Bank v. Olsen, 423 Pa. Super. Tenancy by the entirety is a legal ownership concept that determines how spouses co-own properties as a single legal unit and enjoys complete ownership. 24, 467 A.2d 510 (Md. Each state has its own laws that govern tenancy by the entirety and how it may be applied. For more information about the legal concepts addressed by these . 0363, 2013 WL 9900688, at *12 (C.P. We reverse in part. An existing marriage is requisite for a tenancy by the entirety. However, the enactment of the Married Women's Property Acts[1] questioned the continued need for tenancy by the entireties. Tenancy by the entirety forbids one party from selling the property without the other partys consent. [1] This presumption can only be overcome using clear and convincing evidence of a contrary intent. 0000001853 00000 n Click here. Stated differently, "an estate by the entirety is a form of co-ownership in real and personal property held by a husband and wife with a right of survivorship. However, tenancy by the entirety is not available in all states, and it is sometimes restricted to real estate only. Illinois Compiled Statutes Table of Contents. Life Estate to Spouse," Accessed Dec. 6, 2019. Appeal of Robert P. OLSON. *143 To the same effect, the Court in Brose's Estate, 416 Pa. 386, 206 A.2d 301 (1965), held that language utilized in ten bank accounts in the name of the decedent and his wife clearly created a tenancy by the entireties: Some of the contracts establishing the accounts were well-drawn and entitled "Nicholas or Irma", or "Nicholas and Irma", thus a tenancy by entireties did exist. Can a Former Spouse Inherit Their Ex's IRA Assets? <]/Prev 820722>> 12, 613 A.2d 6 (1992); Estate of Matson, 374 Pa.Super. The Commonwealth of Pennsylvania is one of many jurisdictions in the United States that recognizes a concept known as or similar to "tenancy by the entireties." This refers to a form of property ownership unique to married couples. Schweitzer v. Evans, 360 Pa. 552, 63 A.2d 39 (1949). As with any business decision, you should consider all circumstances. On that basis, we urge the Court to reconsider its Order of October 31, 1991, and we request that the Court vacate its Order of October 31 and direct that the parties proceed in accordance with Pennsylvania Rule of Civil Procedure 209 and Philadelphia Rule 209 to establish the necessary factual record to allow the Court to make inquiry into the relevant factual dispute here, namely, whether or not there is clear and convincing evidence to show the Court that Mr. and Mrs. Olson intended to hold these assets as other than tenants by the entireties, a presumption to which they are entitled under Pennsylvania law. Tenancy by the entirety refers to a form of shared property ownership that is reserved only for married couples. at 175.6ISN Bank v. Rajaratnam, 2009 No. The more important lessons to be learned from this case come by way of a hypothetical scenario set forth by the court. In doing so, the Court elaborated: 416 Pa. at 389 & n. 6, 206 A.2d at 304 & n. 6 (Emphasis added in part). Id. Pa. Oct. 7, 2003) (".property may not be owned as tenants by entireties in Maine. Jewelry Exemption - up to $1,700. Pennsylvania Courts have held that even language in the title of a bank account stating that the husband and wife intended to hold the account as Joint Tenants With Right of Survivorship was not enough to show clear and convincing evidence that they intended to create an estate other than a tenancy by the entirety. The only ways to sever tenancy by the entireties are by joint acts[10], such as: divorce[11], joint conveyance, and mutual agreement (either express or implied). [1] On or about November 12, 1991, Mr. Olson *139 filed a "Petition to Strike and/or Open Judgment, and Request for Stay of Proceedings", wherein it was alleged, as herein relevant, that the judgment against the garnishees be stricken because the accounts were entireties property and immune from execution. Specific requirements vary from state to state; some states extend tenancy by the entirety to domestic partners or common-law spouses. PDF. When the surviving spouse dies, the property must be probated as normal. But different states' laws determine how it can be divvied up in a divorce. In the instant case, I find the majority's strict adherence to the traditional attributes of tenancy by the entireties unwarranted. Limited to some states, and may be limited to some types of property. The main advantage of a tenancy by the entirety is to protect the interests of a surviving spouse. [4] The difference in title-ownership affects whether the property can be reached by the creditors of Mr. Olson, which would not occur in an entireties situation, but would avail creditors attachment and execution rights if the property were owned as joint tenants with rights of survivorship, and then only to the extent of the debtor's ownership interest and not the entire estate. [2], 2. That is, particular care must be taken in order for entireties property to actually be available for execution. Divorce of the owners will convert a tenancy by the entirety to a tenancy in . In re Holmes' Estate, supra. An estate or tenancy by the entireties is the usual form of co-ownership of property, either real or personal, by husband and wife in the common law jurisdictions of the United States, including Pennsylvania.' Of the three com-mon law types of co-ownership existent today: tenancy in common, joint ten- because the determination of the action m[ight] affect a legally enforceable interest of [her's] in the accounts in question." To qualify for tenancy by entirety, though, the two owners must be married to one another at the time the property deed is written (some states do allow for same-sex partners). A tenancy by the entirety permits spouses to jointly own property as a single legal entity. %%EOF [1] This presumption can only be overcome using clear and convincing evidence of a contrary intent. Tenancy by entirety offers added financial protections against creditors and other liabilities, which joint tenancy does not. In a Memorandum of Law in support of the Petition, Olson alleged the accounts were entireties property "irrespective of whether the deposits [we]re payable to [them as] husband and wife or to husband or wife or [wa]s denominated a joint account or joint tenancy." In many states there is a presumption . 305 0 obj Definition and Rights, Legal Separation: Definition, How To Prepare, Types, and Example, What Is Tenancy by the Entirety? Nov 3, 2013 #7. While the Rajaratnams contested the Petition to Fix the Fair Market Value in connection with the sheriffs sale, a trial court held that Mrs. Rajaratnam was bound by the 2007 guaranty agreement she executed, and as a result, she would be liable for the to-be-determined deficiency between the propertys sale proceeds and the remaining, outstanding debt. a. . Equity requires us to consider not only the rights and interests of Robert and Elizabeth Olson, but the rights and interests of Constitution Bank as well. And, "[a]t a minimum, the judgment should be opened and plaintiff should be required to demonstrate via clear and convincing evidence that the[y] intended to own the subject account[s] in a fashion other than as tenants by the entireties." 0000003351 00000 n We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Twenty-five states and Washington D.C. allow tenancy by the entirety. This type of legal agreement doesn't apply to other partnerships, such as friends, siblings, parent-child relationships, or business associates. Therefore, in determining whether a tenancy by the entireties has been created, the intention of the husband and wife is controlling and will be given effect. Tenancy by the Entireties is a special form of property ownership that Missouri, and some other states, reserved for married couples only. as he held all of his joint property with his wife, namely in all respects with his wife, as husband and wife, entitled to all the benefits thereof under Pennsylvania law." Tenancy by the entirety is a type of property ownership only available to spouses. [3] Intention is the cardinal and controlling element in determining if a husband and wife shall take ownership of property by the entireties, and if such (i.e., by entireties) sufficiently appears, it will be given effect. We start with the proposition that "[t]here is a sharp difference between joint estates and those held by a husband and wife." Courts can order the sale of the property with the proceeds split between the divorcing couple or award full ownership to one party. Below is a list of some of the federal bankruptcy exemptions that can be used: Motor Vehicle Exemption - up to $4,000. In fact, while both spouses are living, the creditor has no standing whatsoever to stop the conveyance of the property, even when such a conveyance would prevent the creditor from obtaining a judgment against the debtor-spouse. So, even if one spouse writes a will that grants an interest stake in the property to an heir, the power and rights of tenancy by the entirety creates a right of survivorship and invalidatesand supersedes that aspect of the will. Joint tenants or tenants by the entirety. In the latter circumstance, actual or constructive delivery of the property had to be established by clear, direct, precise and convincing evidence. The Act of 1957, however, equalized a married woman's rights with the rights of a married man. [4]Dvorshock v. Dvorshock, 57 Pa. D. & C. 2d 63, 66-7 (1970). The loan eventually went into default, and in 2009, ISN confessed judgment against Mr. Rajaratnam on his 2005 guaranty and his partnership. . Kathleen Kernaghan, Ridley Park, for Constitution Bank, appellee. Property must still be probated after the second spouse dies. 48a. A conveyance or devise of land to two or more persons or to husband and wife, except a mortgage or a devise or conveyance in trust, shall create an estate in common and not in joint tenancy, unless it is expressed in such conveyance or devise that the grantees or devisees shall take jointly, or as . However, there are some differences. Without any response by the Olsons, the court entered an order lifting the "stay" and the Petition to Dissolve Attachment was denied. However, in creating an estate other than by entireties, the evidence necessary in doing so must overcome the presumption of entireties by clear and convincing evidence. *137 The record discloses that on May 24, 1991, the plaintiff, Constitution Bank, filed a complaint and confessed judgment against the defendant, Robert P. Olson, on his guarantee of a loan to Capital Management L.P. in the amount of $251,564.37. Personal property may be owned as tenants by the entirety whether or not the personal property represents the proceeds of the sale of real property. Investopedia requires writers to use primary sources to support their work. The establishment of tenancy by the entirety differs across jurisdictions as well. Care should be taken in a legal action on the guaranty or guaranties of spouses to obtain a single judgment against both spouses. See Pa. WHEREFORE, we respectfully request that the Court enter an Order vacating its decision of October 31, and request that the Court vacate its October 31, 1991 Order and direct plaintiff to file a response to the petition and that the parties proceed in accordance with Pennsylvania Rule 209 and Local Rule 209 and applicable other rules so that the Court may have a full factual record developed upon which to base its decision in the matter. Tenancy by the entirety refers to a form of shared property ownership that is reserved only for married couples. 75 (1964). So in Florida, when you own an asset as Tenants by the Entireties, both spouses are treated as owning an undivided 100% interest in the asset.
