How Property is Divided in a Tennessee Divorce
In Tennessee, property division can be handled by the divorcing couple or the court, depending on whether an agreement can be reached. If you and your spouse are able to come to a mutual understanding regarding how to divide assets—whether through direct negotiation, mediation, or collaborative divorce—you can formalize that agreement in a marital dissolution or settlement agreement. However, if an agreement is not reached, the court will step in and decide the division for you.
What Does the Court Consider in Property Division?
Tennessee follows the principle of “equitable distribution” when dividing property in divorce. This means the division will be fair and just, but not necessarily equal—50/50. Several factors influence how property will be divided, including:
- The length of the marriage
- The age, physical health, and mental well-being of both spouses
- Each spouse’s skills, earning potential, and ability to acquire future assets
- The financial needs and obligations of both spouses
- The contributions made by each spouse toward acquiring property, including non-financial contributions such as homemaking
These are just a few of the elements the court will examine when determining an equitable property division.
Does the Court Divide All Property?
Under Tennessee law, only marital property is divided during a divorce. Marital property refers to assets and property acquired by either spouse during the marriage. Some of the common assets that may be considered marital property include:
- Homes, vacation properties, and rental properties
- Vehicles and boats
- Retirement accounts, including pensions, 401(k)s, and IRAs
- Bank accounts, savings, and cash
- Stocks and other investment accounts
- Businesses
Separate property—property that either spouse owned prior to the marriage or property acquired by one spouse through gift or inheritance—will not be divided in a divorce.
Dividing a Business in Divorce
Dividing a business during a divorce can be particularly challenging, especially when one spouse owned the business before the marriage. However, if the business has increased in value during the marriage, or if both spouses contributed to its growth, some or all of its value may be considered marital property.
In these cases, the court will need to determine the value of the business, taking into account what portion is considered separate property and what portion is marital property. The business may be awarded to the spouse who originally owned it, but the court may also compensate the other spouse by awarding other assets to balance the division. The complexity of business valuation often requires specialized legal and financial assistance.
Get Legal Help with Property Division
If you have concerns or questions about property division in a Tennessee divorce, the Law Office of Lisa Collins Werner is here to provide expert guidance. With over 30 years of experience, our attorney is well-versed in the complexities of property division, including high-asset and business-related cases.
Contact us today to schedule an initial consultation. Call 865-565-1068 or reach out to us online. We proudly serve clients in Knoxville and the surrounding areas, including Farragut and Sequoyah Hills.