“Notice the concern that has been asked about is spoken to directly by Paul. The concern, those who have died and are gone, so where are they. These Thessalonians were concerned about loved ones in Christ and their desire to see them again or if relationships ended at some point when death happens. Paul spoke the Lord's Word to this very issue. Paul heard the Spirit tell him that He didn't want His people ignorant nor feeling sad nor grieving outside of what is healthy and normal. But I would not have you to be ignorant, brethren, concerning them which are asleep, that ye sorrow not, even as others which have no hope. For if we believe that Jesus died and rose again, even so them also which sleep in Jesus will God bring with him. As a side note, we have Jesus uniting the dead who are with Him with their bodies, we will soon see these are glorified bodies given, but the side note is important as there is much wrong teaching about those who die. Many have taught that when a Christian dies, they go to sleep and are unconscious of sorts in the grave (soul sleep), but Paul states clearly that Jesus brings these people with Him when He returns, people like Abraham, Isaac, and Jacob, people like David and Moses and Samuel, people like Paul and Peter and Timothy. Jesus brings those who died in Him and all those who were led to heaven in His ascension. For if we believe that Jesus died and rose again, even so them also which sleep in Jesus will God bring with him. Jesus doesn't bring the dead in Christ with Him if He has them sleeping in death in some grave that has decayed bodies or worse yet DNA floating in the ocean because one was shark bait and process through the shark's digestive system. To be absent from the body (2 Corinthians 5:8) means that the soul is absent from the body, the body is dead in the ground or somewhere on the earth, but the soul is present with the Lord for all who died in Him.
Now ask yourself this, why does the Lord bring those who died in Him with Him at His coming? For this we say unto you by the word of the Lord, that we which are alive and remain unto the coming of the Lord shall not prevent them which are asleep. This answers the question, but one needs to consider what the answer is. Those who alive are raptured, yet before they are raptured, those who are with Jesus have a union also, one that takes place with their soul and their new house for their soul. It is at this time that their soul is united with a body to house them, a temple of the Lord that will last eternity. Jesus brings the dead in Christ so that they may have a house to hold their souls in order that they may be a part of the bride and rule and reign with Him for the 1000 years. 1 Corinthians 15:35 ¶ But some man will say, How are the dead raised up? and with what body do they come? In the great resurrection Chapter, Paul details some very critical information, this is preached at that famous bunny holiday and usually no other time, but it is vital for our understanding because of the details. Paul restates an asked question from the unbelieving and skeptical about those who died in Christ, and their bodies. At the time of Jesus’ Parousia or coming, He unites those who died in Him with a body, a house to rule with Him. Paul answers this question of the skeptics! 1 Corinthians 15:36-40 Thou fool, that which thou sowest is not quickened, except it die: And that which thou sowest, thou sowest not that body that shall be, but bare grain, it may chance of wheat, or of some other grain: But God giveth it a body as it hath pleased him, and to every seed his own body. All flesh is not the same flesh: but there is one kind of flesh of men, another flesh of beasts, another of fishes, and another of birds. There are also celestial bodies, and bodies terrestrial: but the glory of the celestial is one, and the glory of the terrestrial is another. It is from this passage that we get the common term, glorified bodies. At the coming or Parousia, those who died in Christ receive their glorified bodies. This is critical to answer who the dead in Christ are.”
Incorrect. The soul is in the blood. Leviticus tells us this. The spirit is the breath of life, which returns to Him that gave it. We are triune, created in the image of a triune God. Body, soul and spirit. There is "soul sleep" as the soul, in the blood, dies with the body at death until resurrection and judgment. To be absent the body is to be in the presence of the Lord in spirit.
Leviticus also tells us in that passage, albeit by inference, that animals have souls. I Corinthians 15:35-45 tells us they also have spirits, as do we. So, to the very thorough student of the Bible seeking to digest and integrate Biblical details upon the subject, it's no mystery.
Both are correct, but only in part. The body dies, the soul "sleeps" and the spirit returns to God. At resurrection and judgment, the faithful of mankind are made whole once more in perfected, glorified bodies untainted by sin and death. Those who are not will be thrown into the lake of fire along with death and hell, and then there will be no more tears, no more pain and death in all God's holy mountain.
Creation restored. It's all there for the reading.