Most married couples hold title to their property as joint tenants with rights of survivorship. What does this mean? In short, joint tenants with rights of survivorship is simply defined as equal undivided shares in the ownership of real or personal property and upon death those shares the shares pass entirely to the survivor(s). In order to form a joint tenancy with rights of survivorship in real property, it must be so stated on the deed. Simple, right?
It is not that simple if we change the situation. What happens if two couples own real property together as joint tenants with rights of survivorship? For our purpose we will call them couple A and couple B. Couple A sells their interest to another party without Couple B’s knowledge – does that sever the joint tenancy between Couple A and Couple B and convert ownership to a tenants in common situation with the new party? The answer, believe it or not, is yes in New Hampshire! That is because in joint tenancy the parties also have the equal and undivided right to transfer their interest. However, Couple B will remain in a joint tenancy situation between themselves. Sound confusing? It is!
Before you take title to a property, McGrath Law Firm encourages you to speak with your attorney and to determine the best form of ownership for your situation and also with an accountant to advise as to least tax consequences and avoid ending up in a situation similar to the parties above.
The legal team members at the McGrath Law Firm, founded by attorney Peter McGrath, former federal prosecutor, will walk you through every step of the challenging legal matter to address your concerns and achieve your goals as efficiently as possible. From civil litigation, personal injury, Collaborative Law, Family Law, foreclosure prevention, criminal defense, the experienced attorneys at McGrath Law Firm have a successful track record in all aspects of Family Law. Call us to schedule your consultation at (603) 224-7111.