Upon divorce, property held as tenants by the entirety may be divided between ex-spouses, sold with proceeds divided, or awarded to one spouse. The option of forfeiture to the state is highly unlikely. Division is subject to state laws and court decisions.
When a married couple who owns a property as tenants by the entirety divorce, typically, one of the following events occurs, depending on the laws of the state where the property is located and the decisions of the court managing the divorce proceedings:
- The property may be divided, with each ex-spouse receiving a share as tenants in common.
- The property could be sold, and the proceeds divided between the ex-spouses.
- One spouse may be awarded the property outright, often in exchange for other marital assets or considerations.
The option of the property being forfeited to the state is extremely unlikely and not a typical outcome of a divorce. State laws and court decisions will largely determine the division of the property, guided by the principles of fairness and equity, as well as any prenuptial or postnuptial agreements that may be in place.