One of the issues that causes the most conflict in divorce is the division of assets. People work hard to be able to afford nice things, and they do not want to lose the items that they have grown attached to when the marriage ends. Couples may fight about who gets the house, the cars, the jewelry and artwork. People even fight about who will get custody of the beloved family pet. But in all that chaos, they might lose sight of the fact that marital debt is also divided between the two in the same way the assets are divided.
Tennessee follows the equitable distribution approach to dividing marital assets, which means that although the marital property is not split down the middle, the court tries to make sure that the assets are divided in a way that is fair to both parties. Also, debt that is shared by both spouses as well as incurred by one spouse for the benefit of the family will be divided. Deciding who is responsible for what debt can be complicated and become another source of conflict in a divorce. However, in a case that was decided by the Tennessee Supreme Court, Alford v. Alford, it was determined that if possible, the court will assign a debt to the party who received the asset acquired by the debt by considering the following:
- The purpose for incurring the debt
- Which spouse incurred the debt
- Which spouse benefitted from it
- Which party is in the best position to repay the debt
Once the marital debt has been divided, each party needs to understand what they are responsible to pay off. For example: let’s say there is credit card debt, and it is in both parties’ names. The credit card company can go after both parties to repay the debt. However, if the Court orders the other spouse to pay it, you can sue that spouse if they default on the debt. It is a good idea to get a credit check during the divorce process to see if there are any debts or credit cards that you have forgotten about, or even to see if your spouse has taken out a credit card or other debt in your name without your knowledge. If you should forget about a card that your rarely ever use and your former spouse goes on a vengeful spending spree, you could still be on the hook for that debt because your name is also on the account.
Dividing assets and debts in divorce are complicated issues that bring up a lot of emotion and conflict. Having the guidance and support of a knowledgeable Nashville divorce attorney will put your mind at ease as you move through the challenging process of divorce.
When you have an experienced divorce attorney from the law firm of Miller Upshaw Family Law, PLLC on your side, you can be confident that you will get the best outcome possible in your divorce. You are welcome to call 615-391-4200 or complete our contact form to schedule a no-obligation consultation today.
Karla C. Miller has devoted her entire career to the practice of family law in Tennessee. She attended Auburn University and Nashville School of Law, and upon graduation in 1996, she opened her own law firm and has been assisting families throughout Tennessee since then. Learn more about Karla C. Miller here.
