In 1990, the Illinois Legislature enacted a law which provides that a married couple may own jointly their marital residence “in the entirety.” This provision is only available to a married couple, and terminates upon the dissolution of the marriage or upon the death of one of the spouses. It applies only to their marital residence. This mode of ownership should be carefully evaluated and used by persons who have a high risk of being sued personally as a result of professional or business issues.
Tenancy by the entirety is essentially joint tenancy with right of survivorship but with the added benefit of protection of the marital residence from the creditor of one spouse. Thus, for example, a judgment creditor of a husband, when the wife has no liability, may not levy upon the marital residence if it is held by such husband and his spouse as tenants by the entirety. By comparison, the typical joint tenancy situation would permit the creditor to levy upon the husband’s interest, sever the joint tenancy and foreclose upon the real estate, forcing the wife to either redeem the husband’s interest or find a new residence with her portion of the sale proceeds.
Please do not hesitate to telephone us if you desire more information about tenancies by the entirety.