In every divorce, a couple is expected to divide their marital property and other assets before a divorce can be granted. If you are divorcing in the state of Tennessee, you and your spouse will be expected to “equitably” divide your marital assets and your expenses. You have two choices in how this can happen. The two of you can work together to decide who takes what from the marriage, or you can rely on the court to make a decision.
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Tennessee is an Equitable Distribution State
In Tennessee, marital assets are divided by equitable distribution. While this type of distribution has been developed to be fair to both spouses, it is not always equal. The court considers many different factors when making determinations about the division of marital assets. They will consider:
- The length of the marriage
- The age of both spouses
- The physical and mental health of both spouses
- The earning capacity of both spouses
- The ability of each spouse for future income and assets
- The financial requirement of both spouses
- The individual contributions that both spouses have made to the marriage. Contributions as a homemaker are considered a valuable contribution.
Marital Property and Equitable Distribution
Not all property in a marriage is considered marital property. Spouses often come to a marriage with assets and debt of their own. Anything one spouse owns prior to marriage, or property that has been acquired through a gift or inheritance, is considered separate property. At the end of the marriage, the only property that is considered in equitable distribution is marital property.
Marital property can include:
- The primary home
- Investment or vacation homes
- Vehicles
- Cash and bank accounts
- Stocks, bonds, and other investments
- Retirement accounts, pensions, 401(k)s
- Businesses
In Tennessee, the courts may consider separate property in asset division if one spouse has substantially more than the other in the way of separate property. In this case, the court may award the spouse with less separate property a more significant share of the marital property in the division.
There may also be cases when separate property is considered marital property. If one spouse comes to the marriage with a home, but the other has made significant contributions in its upkeep and appreciation, the additional value of that home over the course of the marriage may be considered marital property.
How Does the Court Value Marital Assets?
Many of a couple’s assets can be easily determined, such as money in a bank account or a publicly-traded stock. For other assets, the court will have to rely on proof by an appraiser or other expert. This is the case for a home as well as other real estate, artwork, jewelry, businesses, or other assets. Hiring appraisers can become costly, particularly when both spouses have their own experts.
The Benefits of Settling the Division Outside of Court
Whenever divorcing spouses rely on the court to make decisions for them, they run the risk that it will impose a decision that nobody is happy with. The court will make these decisions based on its understanding of equality, not necessarily what works best for the couple. Many couples prefer to settle property division themselves, if possible, depending on the complexity of their assets.
Having a Representative Who Can Skillfully Assist You in Asset Division
If you are navigating a divorce and are concerned about dividing your marital assets, getting the help of a skilled divorce attorney can be critical. Although asset division can be emotionally charged, having a legal representative in your corner can help keep conflict at a minimum and enable negotiation to be creative and focused on your specific needs and wishes. At Kidwell, South, Beasley & Haley, we will advocate for you and ensure that you come away from your property division feeling that you have been treated fairly. Contact us for a free consultation.