The answer is that the spouse who finds a new residence no longer has the protection of their interest in the homestead against that spouse’s individual creditors.
The moved spouse can no longer claim the property as primary residence and the divorce has terminated tenants by entireties protection otherwise available for all real estate, homestead or not homestead, owned jointly by married couples.
The spouse who remains resident in the homestead still has homestead protection for their 50% interest in the equity. The fact that the property is now owned as tenants in common has no effect on homestead protection.
Severance of TBE Property
Typically, homestead property is owned jointly by husband and wife as tenants by entireties. Upon divorce, the tenants by entireties is broken and the homestead is owned by husband and wife as tenants in common.
About the Author
Jon Alper is a nationally recognized attorney specializing in asset protection planning. He graduated with honors from the University of Florida Law School and has practiced law for almost 50 years.
Jon and the Alper Law firm have advised thousands of clients about how to protect their assets from creditors.
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