Dividing property during a divorce is about untangling a shared life. From homes and bank accounts to cars and credit cards, figuring out who keeps what can quickly get complicated. But how is property divided in a Tennessee divorce? Fortunately, there are clear rules about what is considered yours, theirs, or ours.
Here is a look at the process so that you can feel a lot more grounded during an otherwise stressful time.
Identifying What’s “Separate” and What’s “Marital”
Before anything can be divided, Tennessee courts sort your property into two categories: separate property and marital property.
Separate property includes:
- Anything you owned before the marriage
- Gifts or inheritances meant for you
- Income or appreciation from separate property, as long as it was not mixed with marital assets
Everything else that was acquired during the marriage is marital property. That means your home, shared bank accounts, retirement contributions, and most assets purchased after you said “I do” likely fall into this bucket.
In a divorce, only marital property gets divided. That means separate property stays with the spouse who owns it. But sometimes, the line between the two blurs.
When Separate Property Becomes Shared Property
Many times, the property that started out separate has become marital over time. Tennessee courts look at how you treated the asset during your marriage. Two concepts come into play: commingling and transmutation.
Commingling happens when separate and marital funds are mixed. For example, if you inherit money but deposit it into a joint checking account and use it for family expenses, that inheritance might lose its separate status.
Transmutation occurs when one spouse treats separate property as if it were community property. For example, that could include adding the other spouse’s name to a deed or using marital funds to pay for improvements on a previously owned home.
If you want to keep something separate, you have to treat it that way. You want to keep clear records and avoid combining separate funds with marital ones.
Tennessee’s Approach Is Fair, But Doesn’t Always Mean Equal
Tennessee follows equitable distribution. That means property is divided fairly, not necessarily equally.
Unlike states that split everything down the middle, Tennessee judges consider what makes sense for each couple’s situation. They are also guided by several factors outlined in Tennessee Code §36-4-121.
Those factors include:
- Each spouse’s financial and non-financial contributions to the marriage
- The value of each spouse’s separate property
- Each person’s earning capacity, age, and health
- The length of the marriage
- The economic circumstances of each spouse after divorce
- Any tax implications that might result from dividing certain assets
- Any other factor necessary to reach a fair outcome
Dividing Debts and Valuing Assets
Divorce is not just about splitting assets. Debts must be divided as well. Mortgages, car loans, and credit card balances are considered marital obligations if they were taken on during the marriage.
Each debt is assigned based on what is fair under the circumstances. The court looks at who benefited from the debt, and who’s in a better financial position to repay it.
However, before that division happens, both assets and debts must be valued. Under Tennessee law, property must be valued as close as reasonably possible to the divorce date to reflect current financial conditions.
How to Handle Property Division
Now that you know the basics, here are a few proactive steps to make the process easier:
- Create an inventory: You want to list all assets and debts, noting when and how each was acquired.
- Keep documentation: Collect your bank statements, deeds, and titles to prove ownership.
- Understand your contributions: Whether financial or domestic, both types of contributions matter in the court’s eyes.
- Stay realistic: Equitable doesn’t always mean 50/50, but it should feel fair given your circumstances.
- Get professional guidance: An experienced Knoxville divorce attorney can help make sure your rights are protected, especially when property or retirement accounts are involved.
We Can Assist with the Divorce Process
Now that you know how property is divided in Tennessee, you can prepare for the process. In the Volunteer State, it comes down to one guiding principle: fairness.
If you are facing a divorce or have questions about how Tennessee law might apply to your situation, the team at Easter & DeVore Attorneys at Law is here to help. Our team offers personalized guidance for your situation.
Schedule a confidential consultation today to discuss your options.
