Navigating Equitable Distribution in a Modern Divorce
One of the most common misconceptions we hear in our Nashville office is: “We’ve been married ten years, so I get half of everything, right?” In Tennessee, the answer is a nuanced “maybe.” Tennessee is an equitable distribution state, not a “community property” state. This means the law requires a division of assets that is fair considering all the facts of the case, which doesn’t always result in a mathematical 50/50 split.
The Categorization Phase: Marital vs. Separate
Before a judge can divide a single cent, we must categorize every asset. Generally, separate property includes anything you owned before the wedding or received as a personal gift or inheritance. Marital Property includes almost everything acquired during the marriage, regardless of whose name is on the title.
However, things get complicated quickly. Separate property can become marital property if it is commingled or transmuted. Comingling is a process by which separate property becomes marital property by becoming inextricably mingled with marital property or with the separate property of the other spouse. An example would be putting marital money into a separate account.
Similarly, transmutation occurs when separate property is treated in a manner that demonstrates an intention for it to become marital property. For instance, if a party owns a home before marriage and then retitles the home by adding their spouse’s name during the marriage, it would be considered as being transmutated and become part of the marital estate.
What Factors Influence the Split?
A judge will look at a variety of factors to determine what a “fair” split looks like, including:
- The length of the marriage.
- The physical and mental health of both spouses.
- Each spouse’s earning capacity and financial needs.
- The contribution of a “homemaker” spouse to the family’s success.
How Our Firm Can Help
Property division is often the most technical part of a divorce. Our Nashville family law attorneys work with financial experts, appraisers, and forensic accountants to ensure that every asset, from Nashville real estate to retirement accounts and business interests, is valued correctly. Our goal is to ensure you leave the marriage with a financial foundation that allows you to move forward with confidence.