David has a judgment entered against him in Tennessee. David and his wife Carol hold their Knoxville home as tenants by the entirety. Can David's judgment creditor force the sale of the home to satisfy the debt?
Correct Answer
C) No, because property held in tenancy by the entirety is generally protected from the individual debts of one spouse
Under Tennessee law, one of the significant protections of tenancy by the entirety is that property held in this form is generally shielded from the individual debts of only one spouse. Because the spouses hold the property as a unified legal unit, a creditor of only one spouse cannot force a sale of the property to satisfy that individual debt. Both spouses would need to be jointly liable for the debt before the creditor could reach the property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
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