When couples purchase real estate, it is common for them to do so as “joint tenants.” This arrangement means that upon the death of one spouse, their share automatically passes to the surviving spouse, regardless of what their Will may state. This transfer is a result of property law, specifically the “right of survivorship.” For couples in in-tact relationships, this legal arrangement aligns with their intentions, as they likely want their partner to inherit their share of the property.
However, separation can happen, and when it does, the intentions regarding property inheritance may change dramatically. Many separating couples no longer wish for their ex to automatically inherit their share of the home. Yet, without taking legal steps to alter the joint tenancy, the “right of survivorship” will remain in place. This could lead to an unintended consequence where, in the event of one party’s death, their share of the property goes to the ex-spouse instead of other beneficiaries.
To prevent this, it is essential to seek legal advice as soon as possible after separation. The “right of survivorship” can be stopped by lodging a request with the land titles office in your state to sever the joint tenancy. Once severed, the property ownership changes to a “tenants in common,” which means each party owns a defined share of the property. Unlike joint tenancy, under a tenancy in common, each person’s share of the property can be passed on according to their Will or estate plan.
Severing joint tenancy is a straightforward process, but the legal implications make it crucial to get professional guidance. At Freedom Family Law, we can help you navigate this process. Contact us on 07 5409 8000 for a free initial consultation to discuss your options and secure your interests during separation.