Protecting your assets from creditors and lawsuits should be part of your estate plan.
There are a number of asset protection strategies that you can integrate into your estate plan. Which ones are right for you will depend on your individual situation and state laws, so be sure to consult with an experienced estate and probate lawyer.
No single asset protection strategy may be the “be all and end all” for you, but each one does have its advantages.
In today’s post we are going to discuss just one asset protection strategy available to married couples —that of owning assets as Tenants by the Entireties (commonly referred to as “TBE”).
(Please note that owning assets as TBE is available only to married couples.)
Asset Protection in a Nutshell
Let’s start by looking at some of the reasons why asset protection is important. It may be uncomfortable to think about, but there are any number of situations that could arise in which you could lose your hard-earned wealth or property. Consider these few:
- Divorce
- Car accidents
- Someone is injured on your property, and you get sued.
- Business failures
- Litigation of any nature
Asset protection is a way of preventing creditors from reaching your money/property. Using proper asset protection strategies before any creditor issue arises can be an effective protection strategy.
Asset protection is a legal means of safeguarding your assets and making it more difficult for creditors to collect on those assets. It doesn’t make it impossible for creditors to collect on their debts, it simply makes it more difficult for them to reach particular assets (like your home or financial accounts) in order to do so.
There are many different strategies you can use, and, as mentioned above, today’s post will only be discussing one of those strategies, so be sure to consult with your Florida estate and probate attorney to discuss your particular needs.
Owning Your Assets as Tenants by the Entireties
A simple way that married couples can protect their assets is to make sure to hold title to as much of their property as they can as Tenants by the Entireties (“TBE”).
Married couples can own any type of property as TBE, including real estate and bank or investment accounts.
So, how does this help protect against creditors?
Well, when you own property as TBEs:
- during the marriage, neither spouse can convey the asset/assets without the consent of the other
- a creditor of just one spouse cannot attach or lien the property, and
- when one spouse dies, the asset is automatically titled in the name of the surviving spouse, avoiding probate.
Importantly, only joint creditors can reach property that is held as TBE.
While real estate in Florida is automatically owned as TBE as long as the deed to the property refers to the owners as “a married couple,” or as “husband and wife,” etc., the same is not true with financial accounts.
Most financial accounts are titled as “joint tenants,” or “joint tenants with right of survivorship” or it may simply say “John Doe OR Jane Doe.” None of these ownership forms are TBE ownership—so they will not afford asset protection.
To provide your financial accounts with asset protection, talk to your bank and confirm how the account is titled. Then, if necessary, re-title the account as Tenants by the Entireties.
If your bank won’t title it as TBE (because some won’t), take your money elsewhere (Investopedia, 2024).
Additional Strategies for Married Couples
While TBE is a strong tool, it is not the only option available to protect assets from creditors. Many couples choose to use a layered approach for greater protection.
Trusts: Certain trusts, such as Domestic Asset Protection Trusts (DAPTs), are designed to shield assets from creditors. These are not available under Florida law, but they may be established in states that allow them. Spendthrift trusts can also protect inheritances and family wealth from creditors of beneficiaries (Alper Law, 2024).
Prenuptial and Postnuptial Agreements: Agreements between spouses can help protect premarital property or limit exposure to one spouse’s debts. They are enforceable contracts that must follow specific rules to be effective (Blake Harris Law, 2024).
Business Structures: Holding investment property or operating a business through a Limited Liability Company (LLC) or Family Limited Partnership (FLP) can insulate personal assets from business risks (Investopedia, 2024).
Insurance: Liability and umbrella insurance policies provide an important first line of defense. Even with strong legal protections, lawsuits and accidents can still happen, and insurance offers critical backup protection (Diamond Debt Relief, 2024).
Comparison of Common Asset Protection Strategies for Married Couples
| Strategy | Who It Protects Against | Key Advantages | Limitations |
| Tenancy by the Entireties (TBE) | Individual creditors of one spouse | Strong protection for jointly owned property; automatic survivorship; simple to maintain | Not valid after divorce; doesn’t protect against joint debts; financial accounts must be correctly titled |
| Trusts (DAPTs & Spendthrift) | Creditors of beneficiaries (varies by trust and state) | Can shield assets and support long-term planning; spendthrift clauses limit creditor reach over beneficiaries | Florida doesn’t allow DAPTs; self-settled protection depends on situs state; setup and compliance required |
| Prenuptial/Postnuptial Agreements | A spouse’s premarital or business debts | Clarifies separate vs. marital assets; helps limit exposure to one spouse’s liabilities | Must meet strict legal requirements; not a blanket shield against third-party creditors |
| LLCs and FLPs | Business-related creditors and lawsuit risks | Separates personal and business assets; charging-order protections in some states; flexible management | Requires proper formation, records, and separateness; personal guarantees can bypass the shield |
| Insurance (Liability and Umbrella) | General liability, accidents, and lawsuit judgments | Affordable first layer of defense; broad coverage that complements legal structures | Coverage limited by policy terms and exclusions; may need higher limits for real protection |
Frequently Asked Questions
What is the difference between tenancy by the entirety and joint tenancy?
TBE is only for married couples and offers creditor protection against the debts of one spouse. Joint tenancy does not provide this protection.
Can a tenancy by the entirety account be moved into a trust?
Yes, but transferring ownership to a trust may remove TBE protection. Couples should consult an attorney before making this change.
Do prenuptial agreements protect against creditors?
They can help limit exposure to a spouse’s debts by keeping certain property separate, but they do not automatically stop creditors.
What happens to TBE property if a couple divorces?
The property converts to tenancy in common, and creditor protections are lost.
Are Domestic Asset Protection Trusts recognized in Florida?
No. Florida does not allow DAPTs, but couples may use them by setting up trusts in states that permit them.
Does insurance count as asset protection?
Yes. Liability and umbrella policies are essential layers of protection against unexpected claims.
Is TBE protection automatic in Florida?
Real estate titled in both spouses’ names as a married couple is typically recognized as TBE. Bank and investment accounts must be explicitly titled.
Can creditors reach retirement accounts?
In most cases, qualified retirement accounts such as IRAs and 401(k)s have strong creditor protection under state and federal law.
Do both spouses need to sign for a creditor to reach TBE property?
Yes. Creditors must have a joint debt signed by both spouses to pursue TBE assets.
What is the best single way to protect assets?
There is no single best way. A layered approach combining TBE, trusts, insurance, and legal entities provides the strongest protection.
Protecting Your Family is Just a Phone Call Away
Don’t leave planning for your future and that of your loved ones to chance. All it takes is one phone call to SJF Law Group to ensure that your wishes will be followed, and your loved ones taken care of when you are gone.
We expertly guide individuals through the complex probate process, and capably handle all aspects of the creation, administration, and settlement of trusts as well. When you work with the estate planning attorneys at SJF Law Group, you get more than just an estate plan: you get peace of mind.
Call us at 954-580-3690 or email us at: info@estateandprobatelawyer.com today.