Tenancy by the Entirety for Automobiles, Boats, and Personal Property

Florida’s tenancy by the entirety protection extends well beyond bank accounts and real estate. Married couples can hold automobiles, boats, household furnishings, and virtually any other form of personal property as TBE, shielding it from the creditors of either spouse individually. The rules for each category, however, differ in important ways.

Bank accounts benefit from a statutory presumption under Florida Statutes Section 655.79 that a joint marital account is TBE unless disclaimed in writing. Real property benefits from a strong common law presumption triggered by the deed. Tangible personal property like cars, boats, and furniture operates under different rules entirely, and married couples who assume the same presumptions apply to everything they own jointly will often find themselves unprotected when a creditor comes calling.

Automobiles

Automobiles are one of the most misunderstood categories of TBE property in Florida. Unlike bank accounts or real estate, vehicles are governed by their own titling statute, Florida Statutes Section 319.22, which controls how ownership interests are created and transferred.

Under Section 319.22(2)(a), a vehicle can be registered in two names using either the conjunction “or” or the conjunction “and.” This seemingly small distinction has enormous legal consequences.

When a vehicle is titled using “or” (for example, “John Smith or Jane Smith”), the statute provides that the vehicle is held in joint tenancy. Each co-owner has the absolute right to dispose of the vehicle independently, and either signature alone is sufficient to transfer title. The Fifth District Court of Appeal confirmed in Xayavong v. Sunny Gifts, Inc., 891 So. 2d 1075 (Fla. 5th DCA 2005), that titling a vehicle with “or” precludes TBE ownership entirely, regardless of the couple’s intent. The Beal Bank presumption that applies to bank accounts does not override Section 319.22 for motor vehicles.

When a vehicle is titled using “and” (for example, “John Smith and Jane Smith”), both signatures are required to transfer title. This is a necessary condition for TBE ownership because it preserves the requirement that neither spouse can unilaterally sever the tenancy. A married couple that titles a vehicle using “and” while meeting the other five unities of TBE ownership can hold the vehicle as TBE.

The practical problem is that most dealerships and DMV offices default to “or” when issuing joint titles. The person submitting the application typically writes “husband or wife” without understanding the legal distinction. Florida residents who want TBE ownership of their vehicles must specifically request the “and” conjunction on the title application and verify that the issued certificate of title reflects this designation.

Even when a couple successfully titles a vehicle as TBE, there is a strong practical reason to think twice before doing so. Florida’s dangerous instrumentality doctrine holds that every person listed on a vehicle’s title is vicariously liable for injuries caused by anyone driving the vehicle with permission. If both spouses are on the title and either spouse causes an accident, the injured party can pursue a judgment against both spouses jointly. A joint judgment defeats TBE protection because TBE only shields property from the creditors of one spouse individually.

The Florida Bar Journal has specifically noted that despite the technical ability to own a vehicle as TBE, married couples should generally avoid joint ownership of automobiles because of the dangerous instrumentality doctrine. The better approach from an asset protection standpoint is to title each vehicle in only one spouse’s name, so that an accident creates liability for only the titled spouse. The non-titled spouse’s individual assets and the couple’s TBE assets (bank accounts, real estate, and other property) remain protected from the judgment. Adequate liability insurance and an umbrella policy provide additional protection.

Boats are subject to similar considerations. The Florida vessel titling statute, Section 328.01, follows the same “and” versus “or” framework as motor vehicles. A boat titled with “or” is joint tenancy, not TBE. More importantly, boats are also classified as dangerous instrumentalities under Florida common law, creating the same joint liability problem that applies to automobiles. For this reason, many asset protection attorneys recommend that boats be owned through a multi-member LLC rather than jointly by both spouses.

Household Furnishings and Untitled Personal Property

Household furnishings, electronics, artwork, jewelry, and other tangible personal property inside the home present a different challenge. These items are not “titled” in any government registry. No certificate of ownership exists for a dining room table or a television. The question for these assets is how a debtor proves TBE ownership when there is no document that reflects the ownership structure.

The general rule is that tangible personal property acquired jointly by a married couple during the marriage is presumed to be owned as TBE. This is an extension of the Beal Bank framework to personal property generally. The presumption places the burden on the creditor to prove that the couple did not intend TBE ownership.

Courts have identified several factors that support TBE ownership of household furnishings. Whether the item was purchased with funds from a joint marital account is relevant. Whether the couple’s estate planning documents leave household furnishings to the surviving spouse supports the inference of joint marital ownership. Whether the items are insured under a single homeowner’s or renter’s policy naming both spouses as insureds is another indicator. Testimony that both spouses participated in the decision to purchase the item also strengthens the TBE claim.

There are exceptions. Each spouse’s personal clothing and jewelry are generally considered individual property rather than TBE property, even when purchased during the marriage. A valuable watch purchased by one spouse with separate funds and worn exclusively by that spouse would likely be treated as that spouse’s individual property, reachable by that spouse’s creditors.

It is important to distinguish household furnishings from the homestead itself. Personal property located inside a homestead is not protected by Florida’s homestead exemption. The homestead exemption under Article X, Section 4 of the Florida Constitution applies only to the real property. Built-in appliances that are considered fixtures may qualify as part of the real property, but movable furniture, electronics, artwork, and similar items are personal property that must rely on TBE or the Florida personal property exemption (up to $1,000 under Florida Statutes Section 222.25, or $4,000 if the debtor does not claim homestead) for protection.

For married couples concerned about protecting valuable household items, the best practice is to ensure that all major purchases are made from a joint account and that insurance policies list both spouses as named insureds. Keeping receipts and purchase records that show joint payment creates evidence of joint acquisition that strengthens the TBE presumption.

Tax Refunds, Insurance Proceeds, and Other Intangible Property

The TBE framework extends beyond physical objects. Florida courts have recognized TBE ownership in a wide range of intangible personal property, including jointly filed tax refunds, insurance proceeds from jointly owned policies, promissory notes payable to both spouses, and even causes of action that belong to the marital unit.

The key question for intangible personal property is always the same: did both spouses acquire the interest jointly during the marriage, and do the six unities exist? When a married couple files a joint tax return and the resulting refund is deposited into a joint TBE bank account, the refund retains its TBE character. If the refund is deposited into one spouse’s individual account, the TBE character may be lost.

Stock certificates, LLC membership interests, and partnership interests can all be held as TBE if properly titled. The Brokerage Accounts article covers the specific requirements for investment accounts. For LLC interests, the operating agreement should reflect that the membership interest is held by both spouses as tenants by the entirety, and the firm’s tax returns should be consistent with that designation.

Adding Non-Spouses Destroys TBE

A question that arises frequently is whether parents can own property as TBE when a child is also on the title. The answer is no. TBE is exclusively a form of ownership between two married spouses. Adding any third party to the title, whether a child, parent, sibling, or business partner, destroys TBE ownership entirely.

If a married couple owns a home as TBE and adds their adult child to the deed, the property is no longer owned as TBE. It becomes either a joint tenancy with right of survivorship or a tenancy in common, depending on the deed language, and a creditor of either spouse can reach that spouse’s interest.

There is a workaround for families that want a child to have an ownership interest in property while preserving TBE protection for the parents’ share. The parents can hold their interest as TBE while the child holds a separate interest as a tenant in common. For example, the parents could own a two-thirds interest as TBE and the child could own a one-third interest as a tenant in common. In this structure, a creditor of one parent alone cannot reach the parents’ two-thirds TBE interest, though the child’s one-third interest would be subject to the child’s own creditors.

The same principle applies to bank accounts and brokerage accounts. Adding a non-spouse to a TBE account as a co-owner destroys the tenancy. If a couple wants a child or parent to have access to the account for convenience purposes, the correct approach is to grant a power of attorney or authorized signer designation rather than adding the person as a joint owner.

Summary of Personal Property Categories

Property Type	TBE Available?	Key Requirement	Practical Recommendation
Automobile	Yes, if titled with “and”	Must use “and” (not “or”) on title	Title in one spouse’s name only; dangerous instrumentality creates joint liability risk
Boat	Yes, if titled with “and”	Same “and” vs. “or” rule as vehicles	Own through LLC; dangerous instrumentality applies
Household furnishings	Yes, by presumption	Acquired jointly during marriage	Pay from joint account; insure under both names
Jewelry and clothing	Usually individual property	Depends on acquisition and use	Personal items of one spouse are generally not TBE
Tax refunds	Yes	Filed jointly; deposited in joint account	Deposit refunds into TBE account
LLC interests	Yes	Operating agreement must reflect TBE	Ensure tax returns match TBE designation
Stock and brokerage accounts	Yes	Account must be designated TBE	See Brokerage Accounts

For a comprehensive overview of TBE protection in Florida, see the Tenancy by the Entirety in Florida guide. Couples opening new financial accounts should review the How to Open a TBE Account article for step-by-step guidance. The Joint Ownership Types article explains how TBE compares to other forms of joint ownership available in Florida.