The division of assets and determining who will get custody of the children can be the two most contentious issues in divorce. Most people plan to be married forever when they say their “I do’s.” Over the years, they have children together, build homes and businesses, and he may collect classic cars and she may collect art and antiques. Together they amass an enviable collection of vintage wines that are aging in the wine cellar. But the couple eventually grows apart and maybe one of them has found a new love interest. Divorce ensues, and it is time to divide up the assets that the two of them worked so hard to acquire together.

How are marital assets divided in Tennessee?

Before we delve into how division of assets works, let’s take a step back and look at the two different types of assets – separate and marital.

Separate property: These are assets a) that an individual has coming into the marriage; or b) that an individual receives by gift or inheritance during the marriage. They may have started a business, inherited property or money, cars and other tangible assets.  Portions of a settlement from a personal injury lawsuit may also be considered separate property, depending on how the proceeds are classified (e.g., damages for pain and suffering).

Marital property: This describes all of the income and assets that the couple acquires during their marriage such as:

• All of their income
• Businesses
• Bonuses
• Retirement accounts
• Stock options
• Life insurance
• Bank accounts and investment accounts
• Real estate, boats, cars, art, antiques and everything else the couple might have acquired throughout the years they were married.
• Settlement proceeds of personal injury, workers’ compensation, social security disability actions, and other similar actions for the following: wages lost during the marriage, reimbursement for medical bills incurred and paid with marital property, and property damage to marital property.

However, not only the marital property gets divided.  In the event a spouse can show that he/she substantially contributed to the preservation and appreciation of the other spouse’s separate asset, then that portion becomes a marital asset are subject to division.

The couple can sit down and assess a complete inventory of their marital property and come to an agreement about who will get what. The can decide how they will handle the division of assets between them. However, when there is a lot of money and many valuable and sentimental assets at stake, the couple may have trouble coming to an agreement so the court will divide the assets.

Tennessee is an equitable distribution state, which means that while the judge may not split everything down the middle, the courts endeavor to divide the property fairly between the two.  The judge will consider a host of factors when deciding how the marital property should be divided. To see the complete list of factors refer to the Tennessee Code.

Working with an experienced divorce attorney will ensure that your interests are protected when you are moving through the complex process of divorce. Any financial decision you make may have tax implications now and in the future. Your attorney will have the benefit of experience and they will be able to guide you towards the smart decisions given your circumstances.

Put our legal acumen and discretion to work for you. Contact Miller Upshaw Family Law, PLLC today at 615-391-4200 to schedule an in-person or video consultation with an experienced attorney.