Tenancy by the Entirety (TBE)
A form of joint ownership available only to married couples that gives creditors of one spouse no access to the TBE-held asset. Virginia and West Virginia both recognize TBE for real estate; Virginia also extends it to personal property including financial accounts.
Tenancy by the Entirety () is a form of joint property ownership available only to married couples. Its defining feature: a creditor of one spouse cannot reach the TBE-held property. Only a joint debt of both spouses (a joint credit card, a joint mortgage, joint taxes) can attach. This is a meaningful asset-protection feature for couples in high-liability professions — doctors, real-estate investors, attorneys — without going offshore or to a state.
What TBE also gives you: (1) automatic right of survivorship (property passes to the surviving spouse on death, no probate for that asset), (2) unity of ownership — neither spouse can sell or encumber the property without the other's consent, (3) simple formation — just take title "as tenants by the entirety" at the deed or account opening.
What TBE does NOT give you: (1) no protection against joint debt (federal taxes, joint mortgages, anything both signed for), (2) no protection after divorce (TBE converts to tenancy-in-common on divorce), (3) no federal-tax benefit (both spouses are treated as owning 100% for basis / income purposes), (4) no protection after one spouse dies (the surviving spouse owns outright and TBE is gone).
State-by-state coverage varies a lot. Virginia is unusually broad — TBE applies to real property AND to personal property (bank accounts, brokerage accounts, cars, boats) under Va. Code § 55.1-136. West Virginia recognizes TBE for real property only. Some states do not recognize TBE at all.
Tagged 🟢 — taking title in TBE form at closing or account opening is genuinely DIY. Just tell the title company or bank explicitly: "as tenants by the entirety." The default for married couples in Virginia real-estate deeds is usually tenancy in common unless expressly elected as TBE, so it's worth asking.
State-specific notes
Federal tax liens CAN attach to a TBE interest — United States v. Craft (2002) held that a federal tax lien reaches one spouse's TBE interest despite state-law unity-of-ownership rules. Non-tax federal creditors face a murkier picture; most bankruptcy courts respect state-law TBE in non-joint-debt cases.
Virginia recognizes TBE in BOTH real and personal property under Va. Code § 55.1-136, including bank accounts, brokerage accounts, and motor vehicles. Must be explicitly designated — default is tenancy in common for unmarried couples or joint tenancy without survivorship for some accounts. Explicitly request "tenancy by the entirety" at deed/account opening.
West Virginia recognizes TBE in REAL PROPERTY only — personal property (bank accounts, vehicles) cannot be held TBE in WV. For personal-property asset protection, WV residents sometimes use LLCs or out-of-state trusts.
Alabama does NOT recognize tenancy by the entirety — it was abolished in the 19th century and has not been restored by statute. Married Alabamians titling real property together use joint tenancy with right of survivorship (Alabama requires explicit statement per Ala. Code § 35-4-7) or a revocable trust. Alabama securities can be registered TOD under the Uniform TOD Security Registration Act (Ala. Code § 8-6-140 et seq.), but that's separate from real-property titling.