How Is Property Divided During a Divorce in Tennessee?

July 5, 2024

Divorce, Property Division

If you are going through a divorce, you are likely concerned about what property you will receive. In Tennessee, you and your spouse can reach an amicable agreement regarding the division of your property and ask the court to affirm it. If you are unable to reach an agreement, get in contact with a Nashville property division lawyer to find out how the court can decide the division of property using equitable distribution laws.

Tennessee’s Equitable Distribution Laws

Tennessee Code § 36-4-121 states that a court can divide the couple’s property during divorce in a manner it deems equitable and just. This does not necessarily mean the property is equally divided 50/50. All marital property is subject to division under this law.

Classifying Marital and Separate Property

The first step is to classify the property as marital or separate. Marital property is subject to division, while separate property is not. Under Tennessee law, marital property is defined as all real and personal property, tangible and intangible, acquired by either spouse during the marriage until the date of the final divorce decree and owned by either spouse when the divorce case is filed. Specifically, marital property includes:

  • Income from and any increase in the value of separate property during the marriage if each spouse substantially contributed to its preservation and appreciation
  • The value of vested and unvested pension benefits, stock option rights, retirement, and other fringe benefit rights either spouse accrued as a result of employment during the marriage
  • Awards for personal injury, workers’ compensation, Social Security disability actions, and other similar legal proceedings

In contrast, separate property is defined as any real or personal property either spouse owned before the marriage, including IRAs, as well as:

  • Property acquired in exchange for separate property
  • Income from and appreciation of separate property except as noted above
  • Property received as a gift or inheritance
  • Victim of crime compensation awards, future medical expenses awards, pain and suffering awards, and future lost wages awards

Factors the Court Considers When Making Equitable Distribution

When making decisions regarding equitable distribution, the court considers all relevant factors, including:

  • The length of the marriage
  • The age, health, earning capacity, financial needs, and liabilities of each spouse
  • The contribution that one spouse made to the education, training, or increased earning capacity of the other spouse
  • Each spouse’s ability to acquire assets and income in the future
  • The contributions of the spouses to acquiring, preserving, or increasing the value of marital property, including contributions as a homemaker, wage earner, or parent
  • Whether either spouse depreciated or dissipated marital property, including wasteful expenditure that reduce the marital property for a purpose contrary to the marriage
  • The value of the separate property of each spouse
  • The value of the estate of each spouse before the marriage
  • The spouses’ economic circumstances when property division becomes effective
  • The tax consequences to each party of the distribution

If the couple has children, the court may award the family home and household belongings to the parent with physical custody of the children.

Notably, Tennessee courts do not consider fault for the marriage when making these decisions.

An Experienced Divorce Lawyer from Burdine Law Firm, PLLC Can Help

If you are concerned about how your marital property will be divided during a divorce, our divorce attorney in Nashville can guide you through this process. Call Burdine Law Firm, PLLC today to learn more.