How Equitable Distribution Works in a Tennessee Divorce

In Tennessee, the system of equitable distribution of property is employed during divorce proceedings. Unlike states with community property laws that mandate an equal split of assets and debts acquired during the marriage, Tennessee’s approach aims for fairness rather than strict equality. Equitable distribution focuses solely on marital property, leaving separate property untouched. Understanding these distinctions and the process of identifying and categorizing assets and debts is important to securing a fair distribution in a divorce.

Tennessee law defines marital property to encompass assets and debts acquired by either spouse during the marriage. This includes income earned, real estate purchased, and debts incurred within this period. Conversely, separate property consists of assets and debts each spouse owned prior to the marriage or acquired individually through inheritance or gifts during the marriage. Any increase in the value of separate property during the marriage remains separate unless commingled with marital property.

Tennessee courts evaluate several factors to determine a fair division of marital property and debts. These factors include:

1. Duration of the marriage — Longer marriages might result in a more equal division due to the length of financial and personal interdependence.
2. Age and health of each spouse — Courts consider the age and physical and mental health of each spouse, particularly when determining the ability to earn income and support oneself post-divorce.
3. Income and earning capacity — The current and future earning potential of each spouse plays a significant role, with the goal of ensuring both parties can maintain a reasonable standard of living.
4. Contributions to the marriage — This includes not only financial contributions but also non-monetary contributions such as homemaking and child-rearing.
5. Value of separate property — The value of each spouse’s separate property is considered to ensure a fair distribution, especially if one spouse holds significantly more separate assets.
6. Economic circumstances — The financial needs and circumstances of each spouse at the time of the division are evaluated to achieve a fair outcome.
7. Tax consequences — The tax implications of the property division are taken into account to minimize any adverse effects on either party.

While the goal is fairness, the result is not always a 50/50 split. The court’s primary aim is to reach a division that reflects the unique circumstances and contributions of each spouse during the marriage.

An essential step in the equitable distribution process is accurately locating and identifying all marital assets and debts. Both parties must disclose all relevant information, including bank accounts, investments, retirement accounts, real estate, personal property, and outstanding debts. Failure to do so can lead to an unfair distribution and potential legal consequences. A divorce attorney experienced in marital property division can be invaluable throughout the process.

At The Collierville Law Firm, our attorneys are experienced in making sure our clients in Collierville and the greater Memphis metro region receive the share of assets they are entitled to in a divorce. Call our firm at 901-614-0318 or contact us online to schedule a free initial consultation.