How Are Assets Divided In A Divorce In Tennessee?

Introduction

Going through a divorce is a challenging process, and one of the more difficult aspects is the division of assets. In Tennessee, assets are divided based on the principle of equitable distribution. This means that all marital property is split in a fair and just manner between both spouses. However, it’s important to note that equitable does not always mean equal. The court takes various factors into consideration when dividing property.

Equitable Distribution

As an equitable distribution state, Tennessee ensures that a judge fairly divides all marital property and debt between the divorcing spouses. Marital property and debt refer to any assets acquired during the marriage.

Factors Considered

Several factors play a role in how a judge divides property in a divorce. These factors include:

1. Length of the marriage.
2. Each spouse’s contributions to the marriage, such as primary care of children and maintaining the household.
3. Each spouse’s earning capacity and financial resources.
4. The value of each spouse’s non-marital property.
5. Whether one spouse contributed to the other’s education or career.
6. The needs of each party.
7. Any other relevant factors.

Types of Property

There are two types of property: marital and separate.

Marital Property

Marital property encompasses any property acquired during the marriage. Examples of marital property include:

1. Real estate.
2. Vehicles.
3. Bank accounts and investments.
4. Retirement accounts.
5. Businesses.
6. Collectibles.
7. Household furnishings.

Separate Property

Separate property comprises any property acquired before the marriage, after the date of separation, or through inheritance or gift. This type of property may not be subject to division in a divorce.

Marital Property Division Examples

Let’s look at a couple of examples to better understand how marital property might be divided in a divorce:

Example 1

Husband and Wife have been married for 20 years, and both work outside the home. They have two children, ages 10 and 12. Their assets include a home worth $300,000, a joint investment account worth $50,000, and retirement accounts worth $200,000. In this case, the judge may decide on the following distribution:

1. Wife receives the marital home, valued at $300,000.
2. Husband receives the joint investment account valued at $50,000.
3. Each spouse receives $100,000 from the retirement accounts.

Example 2

Husband and Wife have been married for 3 years. Wife had a successful business before the marriage and continues to run it during the marriage. Husband also has a small business that he operates from home. They have no children but possess a joint investment account worth $100,000. In this scenario, the judge may divide the property as follows:

1. Wife retains her business as separate property.
2. Husband retains his business as separate property.
3. The joint investment account worth $100,000 is divided equally between the two.

Conclusion

Divorce is not a one-size-fits-all process, and asset division can be complex. If you are going through a divorce in Tennessee, it is crucial to consult an experienced family law attorney who can guide you through the process and ensure that you receive a logically fair and equitable division of property.