How Are Marital Assets Split in Tennessee?

As the name suggests, marital assets are those you and your spouse have obtained and shared during your marriage. Especially if you and your divorcing spouse consider yourselves to be high-net-worth individuals, the distribution of your marital assets may be hotly contested in your proceedings. Read on to discover how marital assets are split in a divorce and how one of the seasoned Clarksville property division lawyers at Fendley and Birch can help you fight to keep certain ones.

How Are Marital Assets Split in a Tennessee Divorce?

Tennessee adheres to the equitable distribution process, which is how most states handle the division of marital assets. Under TN Code § 36-4-121(a)(1), the court will divide assets fairly based on each spouse’s contributions to the marriage. Of note, a fair, just split almost never means an equal, 50/50 split.

Evidently, community property and common law states handle property division differently. For one, community property states (i.e., Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) determine all property accumulated during the marriage as equal amongst the two spouses. Thereby, the property may be split evenly in the event of a divorce. The remaining states, Tennessee among them, are the equitable distribution states.

What the Court Weighs When Dividing Property

When a couple files for divorce, the court must consider a number of important factors when dividing their assets in accordance with § 36-4-121(c). These factors include, but are not limited to:

The duration of the marriage
The age and health of each party
The employability and earning capacity of each spouse
Each spouse’s contributions to the education or earning capacity of the other spouse
The value of each spouse’s separate assets
The economic circumstances of each spouse at the time of the division
The tax consequences of asset division
Any other factors deemed relevant by the court

Under § 36-4-121(c)(5), the court also weighs each party’s contribution to the acquisition, preservation, appreciation, depreciation, or dissipation of the property, expressly counting contribution as homemaker or wage earner.

Classification Comes First

Before property can be divided, it must first be classified correctly. During a divorce, only marital property can be divided. Marital property is generally any asset or debt obtained during the marriage, regardless of who technically owns it.

Assets owned prior to marriage, as well as gifts made to one spouse and inheritances, are considered separate assets and will remain the property of the spouse who owned them. However, separate assets may lose their protected classification if they become commingled or mixed into the marital estate.

How Can I Argue to Keep Certain Marital Assets in My Divorce Proceedings?

You may believe that you financially contributed to a certain marital asset more than your spouse did throughout your marriage. Or, you may hold a sentimental value toward a certain marital asset you cannot bear to part ways with. Whatever your specific reasons may be, you may want to fight to keep a certain marital asset within your possession in the aftermath of your divorce proceedings.

Unfortunately, you may not be able to use the fault grounds for your divorce to argue for certain marital assets. For example, say that you cited your spouse’s extramarital affairs as the fault grounds for your divorce filing. Well, you may not be able to argue that you are more entitled to your family home because your spouse cheated. This is not a matter of judicial preference. Section 36-4-121(a)(1) directs the court to divide marital property “without regard to marital fault.”

However, the Tennessee family court may recognize and evaluate your argument of economic fault. That is, if relevant, you may claim that your spouse intentionally wasted marital assets throughout your marriage. By using the same example as above, you may provide evidence of your spouse dissipating your marital assets to support their extramarital affairs. That argument reaches the court through the dissipation factor noted above: the affair itself is irrelevant, but marital money spent on it is not.

What if My Spouse Is Hiding Marital Property?

Unfortunately, it is not uncommon for a spouse to attempt to conceal assets in the hopes of receiving a more favorable outcome. The court cannot divide what it does not know exists, so understanding the common concealment tactics is critical to ensure you can fight for the best possible outcome. Common methods of asset concealment include:

Temporarily gifting or transferring money to family or friends
Understating the value of a business
Delaying a bonus or commission
Opening hidden bank accounts

A forensic accountant can trace these transfers and value closely held assets. Where concealment is uncovered, the court has room to respond within the § 36-4-121(c) factors, and a spouse who hid assets may find the division adjusted against them.

Contact an Experienced Tennessee Divorce Attorney

In conclusion, if you are unsure of your next move, it’s in your best interest to connect with one of the competent Clarksville family lawyers at Fendley & Birch. Our team is committed to helping you navigate these complicated matters and fighting for your best interests. Contact our firm today to learn how we can represent you during these complex times.