What System Do Tennessee Courts Use to Divide Property in a Divorce Case?

The division of assets and debts is one of the most important and complex aspects of a Tennessee divorce. Understanding the legal system used to divide property is essential for protecting your financial interests and future. Continue reading and consult with an experienced Memphis, Tennessee property division lawyer for more information today.

What is Considered Marital Property?

Marital property refers to all assets and debts acquired by either or both spouses during the course of the marriage. This includes the marital home, bank accounts, retirement funds, vehicles, investments, personal property, and more, regardless of which spouse’s name is on the title.

Separate property, on the other hand, is property owned by a spouse before the marriage, or acquired during the marriage by gift or inheritance. Separate property is generally not subject to division in a divorce.

However, separate property can be converted into marital property if it is commingled with marital assets. For example, this can occur if an inheritance is deposited into a joint bank account, if marital funds or labor are used to renovate a pre-marital home, etc. When separate property is commingled, the court may consider all or part of it to be marital property subject to property division.

What System Do TN Courts Use to Divide Property in a Divorce Case?

Tennessee courts use equitable distribution when dividing property in a divorce case. Some states are community property states, which generally mandate an equal 50/50 split of marital assets. However, Tennessee law requires a fair division of marital property.

“Fair” does not necessarily mean equal. The court’s main objective is to allocate assets and debts acquired during the marriage between the divorcing spouses in a manner that is just and appropriate, considering the unique circumstances of the marriage. The court first determines what property is subject to division and then assesses various factors to create an arrangement to distribute the property, aiming for an outcome that reflects the contributions and needs of both parties. This process is discretionary and specific to each unique relationship.

What Factors Are Considered During Equitable Distribution?

Tennessee courts consider several factors when determining a fair division of marital property. The court reviews these factors to ensure the distribution is equitable, though not necessarily equal.

Important factors include:

• The duration of the marriage
• The age and physical/mental health of the parties
• The tangible or intangible contributions by either party to the education or earning capacity of the other
• Each spouse’s earning capacity
• The value of the separate property of each party
• The standard of living the parties enjoyed during the marriage.

The court will weigh the above and all other relevant circumstances to achieve a fair outcome. To learn more about how to protect your financial interests during a divorce, reach out to a skilled attorney at Rice Law today.