Keywords: ground states and nonzero temperature states of transverse-field Ising model, entanglement, logarithmic negativity, density matrices and partial transpose, entanglement threshold and sudden death of entanglement Abstract Entanglement has developed into an essential concept for the characterization of phases and phase transitions in ground states of quantum many-body systems. In this work we use the logarithmic negativity to study the spatial entanglement structure in the transverse-field Ising chain both in the ground state and at nonzero temperatures. Specifically, we investigate the entanglement between two disjoint blocks as a function of their separation, which can be viewed as the entanglement analog of a spatial correlation function. We find sharp entanglement thresholds at a critical distance beyond which the logarithmic negativity vanishes exactly and thus the two blocks become unentangled, which holds even in the presence of long-ranged quantum correlations, i.e., at the system's quantum critical point. Using time-evolving block decimation, we explore this feature as a function of temperature and size of the two blocks and present a simple model to describe our numerical observations.