When married couples purchase a home in Florida, they must decide between various joint ownership options to hold title to the property. This decision affects property rights, inheritance, taxation, and asset protection. Understanding the available options helps couples and make informed choices aligned with their long-term family goals.

Tenancy by the Entireties

The most common form of ownership for married couples in Florida is tenancy by the entireties. This ownership structure, recognized under Florida Statutes Chapter 689, provides unique benefits and protections for married couples.

Benefits of tenancy by the entireties include:

Protection from individual creditors
Automatic right of survivorship
Equal ownership rights between spouses
Unity of control and possession

Under this arrangement, creditors cannot place a lien on the property unless both spouses owe the debt. When one spouse dies, full ownership automatically transfers to the surviving spouse without going through probate.

Joint Tenancy with Right of Survivorship

While less common for married couples, joint tenancy with right of survivorship remains an option. Like tenancy by the entireties, this arrangement provides automatic transfer to the surviving spouse. However, it offers less protection from creditors and can be severed unilaterally by either spouse.

The Florida Land Title Association notes that joint tenancy requires four unities:

Time (acquiring interest simultaneously)
Title (acquiring interest through the same document)
Interest (having equal ownership shares)
Possession (having equal rights to possess the property)

Tenancy in Common

Married couples may also choose tenancy in common, though this option proves less advantageous for most. Under this arrangement, each spouse owns a separate interest that can be sold or transferred independently. The property interest of a deceased spouse passes according to their will rather than automatically to the surviving spouse.

“[In a tenancy by the entireties,] creditors cannot place a lien on the property unless both spouses owe the debt.”

Property Tax Considerations for Joint Ownership Options

The Florida Department of Revenue highlights several tax implications of property ownership. Married couples should consider:

Homestead exemption eligibility
Save Our Homes assessment limitations
Property tax portability rights
Annual tax bill responsibility

These considerations often influence the choice of ownership structure, particularly for couples moving from other states.

Asset Protection Planning

Property ownership choice significantly affects asset protection. The Florida Courts emphasize that tenancy by the entireties provides the strongest protection for married couples, shielding the property from individual creditors of either spouse.

When considering asset protection:

Evaluate current and potential future creditor risks
Consider each spouse’s profession and liability exposure
Review insurance coverage needs
Assess overall estate planning goals

Estate Planning Impact

The chosen ownership structure affects estate planning options. According to Florida property law experts, couples should consider:

Future inheritance plans
Estate tax implications
Probate avoidance goals
Blended family considerations

Changing Ownership Structure

Married couples can change their ownership structure after purchase, though this requires careful consideration and proper documentation. It is recommended that buyers consult an experienced Florida real estate attorney before making such changes to ensure proper execution and avoid unintended consequences.

Special Considerations

Several situations warrant special attention when choosing an ownership structure:

Second marriages with children from previous relationships
Business ownership by one spouse
Significant separate assets
Anticipated inheritance
Medicaid planning concerns

Professional Guidance

Given the significant implications of ownership structure choice, it is better not to attempt to “go it alone.” Seeking professional guidance is recommended. Consider consulting an experienced Florida law firm with a track record of success in real estate law, estate planning, and title insurance.

Advisors such as experienced certified public accountants (CPAs) are also good sources of advice when considering the tax implications of different ownership structures.

South Florida Law

South Florida Law, PLLC is a full service real estate and estate planning law firm with offices in Broward (Hallandale) and Miami-Dade (Coral Gables). With South Florida Law you benefit from the attention to detail and access to partner-level advice that only comes from a boutique-sized firm. However, you also benefit from the firm’s considerable resources that are more akin to that of a larger law firm. If you are facing a legal matter related to joint ownership in a property then reach out to us today for a free consultation by calling (954) 900-8885 or via our website contact form.