In a Tennessee divorce, the division of assets and debts is often the most contentious phase of the legal process. Many people mistakenly believe that “equitable distribution” means an automatic 50/50 split. In reality, Tennessee is an equitable distribution state, which means the court seeks a division that is fair and just under the unique facts of your case, and not necessarily equal.
The first task for the court is to distinguish between separate property and marital property. Separate property generally includes anything owned before the marriage, as well as gifts or inheritances received individually during the marriage. Marital property includes almost everything acquired by either spouse during the course of the marriage, often regardless of whose name is on the title or deed. When making an equitable division of assets, a court also has to weigh how marital debt is being divided or obligated to the parties. This means retirement accounts, businesses, bank accounts, the marital residence, and even the debt accrued on credit cards are all placed on the scale when courts determine what is equitable.
Once the property is classified, the court evaluates several factors to determine a fair split. These factors include the duration of the marriage, the physical and mental health of each spouse, the vocational skills and employability of each party, and the contribution of each spouse to the acquisition or preservation of the marital estate. The court also considers the economic circumstances of each spouse at the time the division is to become effective.
Debts are handled similarly. They too are first classified as marital or separate debts The court can assign marital debt to the parties as it deems fair under the facts of the case. The court looks at who incurred the debt and for what purpose. If a debt was used for the benefit of the family, it is typically shared, even if only one spouse signed for it. This process requires a meticulous review of financial records to ensure no assets are hidden and all liabilities are accounted for.
At Rogers, Shea & Spanos, we understand that your financial future depends on a fair division of your estate. As your Franklin, TN divorce attorney, we work closely with financial experts to value businesses, real estate, and complex portfolios. We advocate for a settlement that reflects your contributions to the marriage and secures your financial stability. Our team is dedicated to ensuring that your rights are protected throughout the negotiation or litigation of your property division.