Martin and Susan hold their home in Keene, New Hampshire as tenants by the entirety. They later divorce, and the divorce decree awards the property to Martin. Martin subsequently dies intestate before executing a new deed. Which of the following best describes the ownership status of the property immediately after the divorce decree is entered?
Correct Answer
C) The divorce severs the tenancy by the entirety and converts it to a tenancy in common, with the divorce decree directing Martin's equitable interest.
Under New Hampshire law, a divorce severs a tenancy by the entirety because this form of ownership is contingent on the parties being married. Upon divorce, the tenancy by the entirety is automatically converted to a tenancy in common. The divorce decree may direct how the property is to be divided or awarded, but the legal effect of the divorce itself is to convert the ownership form to tenancy in common — meaning there is no longer a right of survivorship. Martin and Susan would hold as tenants in common until a deed effectuating the transfer is recorded, and Martin's interest would pass to his heirs upon his death if no deed was executed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
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