In Tennessee divorces, property is divided equitably instead of equally. The law is very clear that in Tennessee, an equitable division of property does not mean that property is divided equally. It means that property is divided fairly.
What is property in Tennessee?
Some examples of property in Tennessee are personal property (money, jewelry, furniture, cars, boats, pets), real property (houses and land), all assets(cash, money, retirement savings, pensions, business), and debts (credit card debt, loans, promissory notes). To begin a division, this property is divided into marital property and separate property.
What is marital property?
Marital property is all subject to division in Tennessee. According to Tennessee law, “marital property” means all real and personal property, both tangible and intangible, acquired by either or both spouses during the course of the marriage up to the date of the final divorce hearing and owned by either or both spouses as of the date of filing of a complaint for divorce. This also includes any property to which a right was acquired up to the date of the final divorce hearing.
Marital property in Tennessee encompasses a wide range of assets and liabilities acquired by either spouse from the date of marriage until the date of the divorce. This includes but is not limited to:
Real estate, including the marital home and any other properties acquired during the marriage.
Personal property, such as vehicles, furniture, jewelry, artwork, and other tangible assets.
Financial assets, including bank accounts, retirement accounts, stocks, bonds, and investments.
Business interests or professional practices acquired or enhanced during the marriage.
Debts incurred by either spouse during the marriage, such as mortgages, credit card debts, loans, and other liabilities.
What is separate property?
Separate property is not subject to equitable distribution. If a court determines property to be your separate property, it cannot be divided. The law defines separate property as:
a. all real and personal property owned by a spouse before marriage, including but not limited to, assets held in individual retirement accounts (IRAs), as that term is defined in the Internal Revenue Code of 1986 (26 U.S.C.), as amended;
b. property acquired in exchange for property acquired before the marriage;
c. income from and appreciation of property owned by a spouse before marriage except when characterized as marital property under subdivision (b)(1);
d. property acquired by a spouse at any time by gift, bequest, devise, or descent;
e. pain and suffering awards, victim of crime compensation awards, future medical expenses, and future lost wages; and
f. property acquired by a spouse after an order of legal separation where the court has made a final disposition of property.
How does a Court equitably divide Marital Property?
In dividing the marital property, the court has to take many things into consideration. The law in Tennessee provides a list.
In making equitable division of marital property, the court shall consider all relevant factors including:
The duration of the marriage;
The age, physical and mental health, vocational skills, employability, earning capacity, estate, financial liabilities, and financial needs of each of the parties;
The tangible or intangible contribution by one (1) party to the education, training, or increased earning power of the other party;
The relative ability of each party for future acquisitions of capital assets and income;
The contribution of each party to the acquisition, preservation, appreciation, depreciation, or dissipation of the marital or separate property, including the contribution of a party to the marriage as homemaker, wage earner or parent, with the contribution of a party as homemaker or wage earner to be given the same weight if each party has fulfilled its role;
For purposes of this subdivision (c)(5), dissipation of assets means wasteful expenditures which reduce the marital property available for equitable distributions and which are made for a purpose contrary to the marriage either before or after a complaint for divorce or legal separation has been filed.
The value of the separate property of each party;
The estate of each party at the time of the marriage;
The economic circumstances of each party at the time the division of property is to become effective;
The tax consequences to each party, costs associated with the reasonably foreseeable sale of the asset, and other reasonably foreseeable expenses associated with the asset;
In determining the value of an interest in a closely held business or similar asset, all relevant evidence, including valuation methods typically used with regard to such assets without regard to whether the sale of the asset is reasonably foreseeable. Depending on the characteristics of the asset, such considerations could include, but would not be limited to, a lack of marketability discount, a discount for lack of control, and a control premium, if any should be relevant and supported by the evidence;
The amount of social security benefits available to each spouse; and
Such other factors as they are necessary to consider the equities between the parties.