In a tenancy in common, how do co-owners hold their interest?

In a tenancy in common, co-owners hold their interest as separate and divisible shares, making this the correct choice. Each co-owner has a distinct, recognized share in the property, which they can transfer, sell, or will to heirs independently of the other co-owners. This means that while they collectively have ownership of the entire property, each person’s share is treated as a separate interest, allowing for flexibility in management and disposition. This arrangement is beneficial for individuals who may invest in a property together but want to maintain control over their portion without needing the consent of the other tenants in common.

The idea of indivisible interest applies more to joint tenancy, where co-owners have equal shares that cannot be individually sold or transferred without affecting the entire ownership structure. Simply sharing a physical space refers to how the property might be used rather than the legal rights and ownership structure. The concept of a formal partnership implies a different type of legal and financial relationship than that which is established in a tenancy in common.