Divorce Laws in Tennessee: Property Division Edition
If you’re currently going through a divorce or are thinking about filing for divorce in TN, then you’re probably wondering what will happen to your properties and assets. Who’s going to get what? Here’s what you need to know about divorce laws in Tennessee that affect property division:
Understanding Personal Property vs. Marital Property
Is Tennessee a 50/50 divorce state? Yes. However, equitable distribution of marital assets is determined by each spouse’s personal property and many other financial factors. So, it is completely possible (if not common) for assets not to be split 50-50. Instead, divorce laws in Tennessee value each party’s assets and then compare them to the assets acquired during the marriage to determine a fair distribution.
Non-Marital Property
Non-marital assets (also referred to as personal or separate) can include property and possessions owned before the marriage, income from a property, inheritance, gifts, and more: anything with monetary value, like investments and stocks, as well as items with both monetary and sentimental value, such as real estate, jewelry, fine art, cars, and collectibles.
Marital Property
Any property or asset acquired during the marriage is considered marital property. Even if the property is titled in one person’s name, it is still considered marital property if it was acquired with funds earned during the marriage.
Commingling & Transmutation Exceptions
Sometimes, the courts may include personal property as marital property on a couple of conditions: commingling and transmutation. Commingling occurs when you mix separate or personal property with marital property. For example, putting an inheritance into a joint account used for paying marital expenses or using personal funds for significant improvements on marital property.
On the other hand, transmutation occurs when you intentionally convert an asset from personal to marital or vice versa. The most common example is when a pre-owned property of one party becomes the marital residence, whether by co-residing and contributing to expenses, transferring the title into both spouses’ names, and refinancing the property to make it a joint asset.
How Tennessee Courts Decide Property Division
If dividing assets cannot be settled out of court through mediation, the next step in the divorce process in Tennessee is to go to court. They will consider a variety of factors regarding the marital equity of each party; a few examples include:
Marriage length- Age and health
- Financial Liabilities and Requirements
- Future earning capacity/income potential
- Value of personal property outside the marriage
- Total value of social security assets available
- Tax implications and future costs associated with the sale of assets or other expenses related to the property.
- Estate value of each spouse during the time of the marriage
- Contribution to property acquisition, appreciation, depreciation, preservation, or dissipation
Why Prenuptial Agreements Matter for Divorce Laws in Tennessee
Is a prenup a good idea? Yes, especially when it comes to property division. Not only can a prenuptial agreement help protect your personal property, but it can also outline property division decisions ahead of time to lessen the stress and emotional burden of divorce proceedings. Our attorneys can also draft postnuptial agreements to address changes in property after marriage, or to safeguard assets in the event of a divorce in the future, for couples who don’t already have a prenup.
The Best Property Division Lawyers in Knoxville, Tennessee
Whether you have millions of dollars’ worth of marital property, priceless assets of your own, or just want to protect what is rightfully yours, the attorneys at Landry & Azevedo in Knoxville are ready to help you navigate the complexities of divorce laws in Tennessee. Schedule a free consultation with our asset division lawyer today!
