Concurrent Ownership

Examples

• Community property: Sean and Samantha, a married couple, are given a 50/50 ownership share in their house in a divorce settlement.
• Tenancy in common: Siblings Richard and Angela have 60% and 40% ownership shares, respectively, in a beach house in Malibu. Although Richard has a larger share, both Richard and Angela may freely use the home. Neither Richard nor Angela has a right of survivorship. When Richard dies of a heart attack, his ownership share goes to his daughter Mary under the terms of his will, rather than Angela.
• Joint tenancy: Farmers Sara and Donna purchase farmland. They are equally co-owners of the land, and they have an equal right to use it. As joint tenants, they have the right of survivorship. When Donna dies of lung cancer, Sara inherits Donna’s share of the land ownership.
• Tenancy by the entirety: A married couple, Andrew and Mary, buy a house two years after getting married. They equally co-own the property, with an undivided interest and the right of survivorship. Neither of them can sell the property without the other’s consent. However, when Andrew is killed in a car accident, Mary inherits all of Andrew’s ownership share in the home.

Case Examples

• Definition of Community Property: Courts have defined community property as “all property that the spouses possess during their marriage is presumed to be community property ... and each spouse has an undivided, one-half interest in all community assets.” United States v. Cluck, No. 5-95-CR-099(1)-DAE, 2018 WL 4496091, at *6 (W.D. Tex. Sept. 18, 2018). In Cluck, a man was convicted of a crime, and the Government foreclosed on his property to satisfy a judgment. Id. His ex-wife argued that the Government could not seize the assets as she had an equal right to the property. Id. The Court stated that the Government could seize community assets, as both parties have complete rights to community property. Id.
• Tenancy in Common Definition: “A tenancy in common is generally defined as the holding of property by several persons by several and distinct titles, with unity of possession only. ” Suzuki v. Helicopter Consultants of Maui, Inc., No. CV 13-00575 JMS-BMK, 2016 WL 1704122, at *2 (D. Haw. Apr. 28, 2016), aff'd on other grounds, No. CV 13-00575 JMS/KJM, 2016 WL 3753079 (D. Haw. July 8, 2016). In Suzuki, the plaintiff sued the defendant for negligence after the defendant's helicopter company accidentally crashed a helicopter into a parcel of land of which both parties were tenants in common. Id. The Court found that the plaintiff could sue for damage to the property, but was limited to recovery only for his portion of the property. Id.
• Joint Tenancy in Bankruptcy: If a group of people hold a piece of property as joint tenants and one of them files for bankruptcy, the piece of property becomes part of the bankruptcy estate. See In re Peet, 819 F.3d 1067, 1069 (8th Cir. 2016). The reason is that bankruptcy proceedings do not have the power to convert a joint tenancy into a tenancy in common, thereby splitting up property. Id. In Peet, one of the joint tenants filed for bankruptcy, and the property at issue became part of the bankruptcy estate. Id. The other tenants sued, claiming that the property could not be part of the bankruptcy estate as they all had a right to let. Therefore, they argued, the property should be converted to a tenancy in common so that each person could get their own share. Id. However, the court disagreed, stating that nothing in the title granted such a transition; therefore, the property remained a joint tenancy. Id.
• Note: If a person has a joint tenancy with a right of survivorship and the other person passes away, they inherit the other person's right to the property.
• Tenancy in the Entirety: If a property is held as a tenancy in the entirety, both parties have full and equal rights to the property. See In re Holland, No. BANKR. 05-58959, 2009 WL 2971087, at *2 (Bankr. N.D. Ill. Sept. 8, 2009). If one party loses their right to the property, that interest automatically transfers to the other party. See id. In Holland, the wife of a man who filed an individual petition for bankruptcy argued that their marital home could not be included in the bankruptcy estate, as she was a tenant in the entirety. Id. The court agreed, stating that the man's interest in the home transferred to his wife, who had not filed for bankruptcy when he filed his individual petition for bankruptcy. Id.