Alabama Real Estate Practice Exam

What happens to Tenancy by the Entirety if a couple gets divorced?

1. It remains unchanged

2. It converts into Joint Tenancy

3. It becomes a Tenancy in Common

4. The property must be sold

The correct answer is: It becomes a Tenancy in Common

A Tenancy by the Entirety is a form of property ownership in which a married couple owns the property together. In the event of a divorce, this form of ownership will typically be converted into a Tenancy in Common. This means that each spouse will now own a specific share of the property, rather than owning it jointly. Option A is incorrect because although the form of ownership may stay the same, the ownership itself will change. Option B is incorrect because Joint Tenancy requires the owners to have the "four unities" of time, title, interest, and possession, which become invalidated by divorce. Option D is incorrect because in most cases, the property does not have to be sold, unless the couple agrees to do so or a court orders it.