Asset protection in Florida.
Tenancy by the entirety, the six unities, and LLC structures, and the mistakes that leave you completely exposed.
Tenancy by the entirety.
A married couple holds property as a single unified legal entity. An individual creditor of one spouse generally cannot touch it.
Property titled as T/E
The primary residence, joint bank and brokerage accounts, investment property: when properly titled as tenancy by the entirety, these assets belong to the marriage, not to either spouse individually.
✔ Shielded from each spouse's individual creditors
Individual creditors
One spouse's credit card debt, a personal judgment from one spouse's business, a claim against one spouse alone: ✘ none of these can reach T/E property.
Only a joint creditor of both spouses may pursue T/E assets, with one major exception: a federal tax lien against one spouse can attach to that spouse's interest (United States v. Craft, 535 U.S. 274 (2002)).
The six unities required for T/E.
All six unities must exist at the moment the property is acquired. Missing even one means no T/E, and no protection.
A client is sued, then deeds the house they own alone to themselves and their spouse to put it out of reach. Florida law does let the owning spouse create T/E this way (§ 689.11(1), Fla. Stat.). But a transfer made to hinder a creditor can be undone as a fraudulent transfer under chapter 726, and § 689.11(3) does not protect it. Timing is everything: retitle before a claim exists, not after.
Unity of Time
Both spouses must acquire their interest at the exact same moment. For real estate, the spouse who owns it can deed it to both spouses, which satisfies this (§ 689.11(1), Fla. Stat.).
Unity of Title
Both receive title through the same instrument, same deed or account agreement.
Unity of Interest
Both spouses hold equal, identical interests. Neither may hold more than the other.
Unity of Possession
Both have an equal right to possess the entire property; neither may exclude the other.
Unity of Marriage
The parties must be legally married at acquisition. T/E cannot exist between unmarried co-owners.
Right of Survivorship
When one spouse dies, the survivor owns the whole property.
"I'll just add my spouse's name"
John purchased a rental property in his name alone in 2019. In 2024, after a claim is made against him, he deeds it to "John and Jane Doe, husband and wife." The creditor sues to set the deed aside as a fraudulent transfer, and wins. The deed was made to dodge a known claim. The property is reachable.
Acquire together from the start
John and Jane purchase together at closing via a single deed to "John Doe and Jane Doe, husband and wife." All six unities satisfied. Property one spouse already owns can be deeded to both spouses (§ 689.11(1), Fla. Stat.), but do it while no claim is pending or threatened. Call us before you act.
The same unities apply to bank accounts. Adding a spouse to an account you already own may not create T/E, because the interests did not begin at the same time. For an account opened by a husband and wife, Florida presumes T/E unless the account documents say otherwise in writing (§ 655.79(1), Fla. Stat.; Beal Bank, SSB v. Almand & Assocs., 780 So. 2d 45, 58 (Fla. 2001)). Choose the T/E option on the account documents to remove doubt.
LLC structures & creditor protection.
How multi-member and Wyoming single-member LLCs limit what a creditor of an individual member can reach, and why your structure choice matters.
2+ members
The LLC owns the assets: real property, equipment, accounts. Members hold membership interests. A creditor of one member:
- ✘ Cannot seize LLC assets. A judgment against a member is not a judgment against the LLC.
- ✘ Cannot force dissolution or sale of LLC property.
- ⚠ Charging order only, a lien on distributions if and when the LLC distributes. The LLC is not required to distribute.
- ✔ Other members fully protected, operations unaffected.
1 member
The Wyoming LLC owns the assets; a single member holds 100% of the interest. A creditor of the sole member:
- ✘ Cannot seize LLC assets, Wyoming statute expressly limits the remedy to a charging order even for single-member LLCs.
- ✘ Cannot force dissolution or foreclose on the membership interest.
- ⚠ Charging order = exclusive remedy by statute. The member-manager controls whether distributions occur.
- ✔ Key for Florida residents: multi-member-equivalent protection with a single owner, something a Florida single-member LLC does not provide. Whether a Florida court or a bankruptcy trustee will honor Wyoming's rule for a Florida resident is not settled. Treat it as one layer, not a guarantee.
Quick comparison: what each structure blocks.
- ✔ Full immunity: individual creditors blocked
- ✔ No charging order needed
- ✔ No ongoing compliance required
- ✘ All 6 unities required at acquisition
- ✘ Ends at divorce or death
- ✔ Blocks seizure of LLC assets
- ✔ Blocks foreclosure on membership
- ⚠ Charging order may reach distributions
- ⚠ Requires 2+ members for full protection
- ✔ Blocks seizure of LLC assets
- ✔ Charging order = only remedy by statute
- ✔ Multi-member-equivalent protection
- ✔ Single owner permitted
- ⚠ Annual Wyoming registered agent fee
Disclaimer: This guide is for general educational purposes only and does not constitute legal advice. Asset protection strategies depend on individual circumstances, proper formation, ongoing compliance, and applicable law. Transfers made to hinder or defraud creditors may be voided under Florida's Uniform Fraudulent Transfer Act (Ch. 726, Fla. Stat.). Consult our office for advice specific to your situation.
Protection must be in place before claims arise.
A one-hour consultation can confirm whether your assets are actually titled the way you think they are.