How is Property Divided in a Tennessee Divorce?
In Tennessee, property division during a divorce is governed by the principle of “equitable distribution.” This means that marital property will be divided fairly, though not necessarily equally. The court considers various factors, such as each spouse’s contributions to the marriage and the economic circumstances of each party, when determining how to divide assets and debts.
Marital property includes most assets and debts acquired during the marriage. In contrast, separate property—including gifts or inheritances received by one spouse—typically remains with the spouse who owns it.
Marital vs. Separate Property
One of the first steps in the property division process is determining which assets are marital and separate. Marital property may include:
- The family home
- Joint bank accounts
- Business ventures started during the marriage
- Retirement accounts
- Vehicles
Separate property generally includes:
- Inheritances received by one spouse
- Gifts are given specifically to one spouse
- Property owned before the marriage
However, things can get complicated and separate property can ‘become’ marital property through commingling or transmutation. An experienced Knoxville property division lawyer can explain these legal doctrines and help ensure that the marital property in your case is properly classified and equitably divided.
Factors That Affect Property Division
When dividing property during a divorce, Tennessee courts consider a wide range of factors to ensure that the division is equitable, even if not strictly equal. Each case is unique, and the following key factors play a critical role in how the court determines a fair distribution of assets and debts:
The Length of the Marriage
The duration of the marriage often impacts how property is divided. In longer marriages, assets are more likely to be split equally, as both spouses contribute significantly to wealth accumulation – directly through wages or indirectly as homemakers. In shorter marriages, the division may focus more on ensuring that each party leaves with what they brought into the relationship, adjusted for any joint acquisitions.
Each Spouse’s Financial Situation & Earning Potential
The court considers each spouse’s current financial standing, including income, assets, and liabilities. It will also consider each spouse’s future earning potential. For example, if one spouse has significantly higher earning power due to education, experience, or career advancement opportunities, they may receive a smaller share of the marital assets.
A spouse with lower earning potential may receive a larger share to help maintain their standard of living post-divorce.
Contributions Made by Each Spouse (Homemaking & Childcare)
Contributions to the marriage go beyond financial earnings. The court acknowledges non-monetary contributions, such as homemaking, childcare, and support for a spouse’s career development.
A stay-at-home parent or a spouse who handled most of the domestic responsibilities may be entitled to a more favorable share of the marital property to account for their invaluable contribution to the family.
The Value of Separate Property
Although separate property is not subject to division, the value of each spouse’s separate assets can still influence the overall distribution. If one spouse has substantial separate property, the court may allocate a more significant portion of the marital assets to the other spouse to achieve a fair and balanced outcome.
The Age & Health of Each Spouse
Each spouse’s age and physical condition are also considered when dividing property. Older spouses or those facing health challenges may need additional financial resources to cover medical expenses or retirement needs. In some cases, a spouse close to retirement may receive a larger portion of retirement savings or other assets to ensure their financial security moving forward.
Other factors may also come into play, such as prenuptial or postnuptial agreements, the needs of any children involved, and the overall fairness of the proposed division. Tennessee courts aim to achieve an equitable resolution that allows both parties to move forward with financial stability.
Retirement Accounts & Property Division
Retirement accounts, such as pensions, 401(k)s, and IRAs, are often among the most valuable assets to be divided in a divorce. Special care must be taken to ensure these accounts are properly divided without causing unnecessary tax penalties. A Qualified Domestic Relations Order (QDRO) is often needed to split these accounts. Our Knoxville attorneys will help ensure the division of retirement assets is handled correctly to secure your financial future.
How Debt is Divided in a Tennessee Divorce
Just as marital assets are divided equitably, so are marital debts. This can include:
- Mortgage debt
- Credit card debt
- Business liabilities
- Loans
Remember that the name on a debt (e.g., a credit card account) does not always determine who is responsible for it after the divorce. Our attorneys will help ensure that debts are divided fairly and that you’re not left paying more than your fair share.
Why Work with Haines Family Law
Led by John Haines, an experienced attorney with a military background, Haines Family Law combines professionalism, strategic thinking, and a strong work ethic in every case. John is committed to offering clear, practical legal advice while prioritizing your goals and your family’s future. With transparent fees, personalized strategies, and a compassionate approach, John ensures you have the support you need to navigate even the most challenging family law matters.
Contact us today for a free 20-minute consultation.
Dividing Debts & Property in a Divorce: FAQs
Who gets the house in a Tennessee divorce?
In Tennessee, the marital home is considered marital property if acquired during the marriage. Further, facts may exist that create a likelihood that a marital home that was acquired prior to the marriage ‘transmuted’ into marital property during the marriage. The court will decide who gets the house based on factors such as the financial situations of both spouses, contributions to the home, and whether children are involved.
If one spouse is awarded the house, it is very common for the other spouse to receive a monetary award of their share of the equity in the home. Oftentimes the home will be sold, and the proceeds equitably divided.
What if one spouse has more separate property?
If one spouse has significant separate property, the court may allocate a larger portion of the marital assets to the other spouse to ensure a fair division. Separate property is generally not subject to division, but its value may influence the overall distribution of assets.
How are medical debts handled in a divorce?
Medical debts incurred during the marriage are typically considered marital debts and are divided equitably between the spouses. If the debt was incurred for one spouse’s medical needs, the court may assign a larger share to the responsible spouse.
What happens if marital and separate property are commingled?
If marital and separate assets become commingled, it can complicate property division. The court may consider the commingled property as marital unless you can clearly trace and separate the individual portion. An attorney can help ensure commingled assets are divided fairly.
Let Haines Family Law Protect You
At Haines Family Law, we understand the stakes in dividing your assets and debts. Our experienced lawyers will work diligently to protect your assets, ensuring you receive a fair and equitable share of the marital estate.
Call Haines Family Law today at 865-391-8174 or contact us online to schedule a free 20-minute consultation.
