05. February 2009: Michigan Tenants by the Entireties

Question:

Hello Ms. Walsh. I am writing with a question/comment regarding your article titled "Michigan Title Company Forces Married Persons to Take Title in Spouse's Name". I am specifically asking about whether creditors of either spouse may attach attach property owned by the entireties". I have read that real property owned by married couples in Michigan as "tenants by the entireties", may be exempt from liens or judgments against an individual spouse. Judgments that were against both spouses could attach a property owned as "tenants by the entireties", while a judgment against an individual spouse could not attach the property. I have also read articles that contradict this. Is it true that owning Michigan property as "tenants by the entireties" would provide some legal protection? If so, this seems very powerful. I would then think that a married couple should hold their home as "tenants by the entireties", while ownership of things that might get you sued (cars) should be held individually.

When I read about "tenants by the entireties" this past summer, I asked my real estate agent what he thought about it. He had no idea. Then I asked my cousin (he works in the legal profession). He said: "All property held by a married couple in Michigan is "tenants by the entireties". It's automatic. It doesn't need to be specified as tenants by the entireties on the deed. It's automatically tenants by the entireties, if you're married".

My opinion is:

1. That might be true (or not), in Michigan. But several federal cases regarding property located in Michigan, seem to hinge on "tenants by the entireties" being explicitly mentioned in the deed. Since "tenants by the entireties" does not exist in all states and several other forms of joint ownership also exist, maybe tenants by the entireties should be explicitly mentioned in a deed, in case of federal action.

2. If "tenants by the entireties" was not defined in the deed, the type of ownership might be open to argument or interpretation by a lawyer or judge.

Just curious what you think.

Thanks for your time. ...More

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