In Pennsylvania, married couples typically hold their joint real and personal property as "tenants by the entireties." A judgment creditor of one spouse cannot execute against such joint marital property, including homes, joint bank accounts, vehicles, etc. Thus, if a creditor sues and obtains a judgment against one spouse, its only remedy is to collect against the individual property of the spouse against whom it has a judgment.

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However, tenancy by the entireties does not protect a married couple’s property against their joint creditors. In other words, if you owe a joint debt with your spouse, your joint marital property is not protected by tenancy by the entireties. Also, the joint property may no longer be protected if it is sold or transferred, the couple divorces, or there is a property settlement in conjunction with a legal separation. (In some instances, the proceeds of the sale of joint property may still be protected by tenancy by the entireties.)

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Tenancy by the entireties is a powerful tool for protecting joint assets against aggressive creditors. In addition to its usefulness as a defense against collection, a skilled bankruptcy attorney can use the doctrine of tenancy by the entireties to help married debtors eliminate individual debts in Chapter 13 bankruptcy that might otherwise have been paid.

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QuickNote: Authorized users on a credit card or other credit account are not joint debtors unless they co-signed for or guaranteed the debt. This issue can surface when a couple attempts to use tenancy by the entireties to protect joint property and in bankruptcy cases where only one spouse files. Consider removing your spouse as an authorized user to avoid confusion if filing for bankruptcy or using a tenancy by the entireties defense.

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