Owen and his wife Pam own their Owensboro home as tenants by the entirety. Owen has a large individual judgment debt. His creditor argues that because Owen contributed 100% of the purchase price, he should be deemed the equitable owner of the entire property, allowing the creditor to attach the full value. Pam contributed no funds toward the purchase. Under Kentucky law, which statement best describes the creditor's position?
Correct Answer
C) The creditor fails because tenancy by the entirety is not severable by one spouse's individual creditor regardless of how the purchase was funded.
Under Kentucky law, once property is validly titled as tenancy by the entirety, the form of ownership controls — not the source of the purchase funds. The tenancy by the entirety is a unified, indivisible ownership that cannot be severed by one spouse's individual creditor. The fact that Owen funded 100% of the purchase price does not give his individual creditor any right to attack the entirety property. Both spouses must be jointly liable for the creditor to reach the property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
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