Divorce is already a stressful time for couples. And one of the most contentious issues that arise at the end of a marriage is dividing property to the satisfaction of both parties. Not only do the assets need to be equally divided between the spouses, but so do the debts. How is the division determined? And what can you do to make sure the process runs smoothly?
The divorce attorneys at GSRM Law know that divorce is stressful for everyone involved. You want to get what rightfully belongs to you. That’s why our law firm works to help determine the worth of your marital assets, make complex property division easier, and guarantee a fair and equitable division of assets according to family laws in the Middle Tennessee region.
Basic Division of the Marital Estate
Tennessee is an “equitable distribution” state. This standard is the basis for determining the division of assets. First, the court must assess what is a marital asset and what is personal property. When it has been determined what is and isn’t involved in the divorce proceedings, equitable distribution can be decided.
Equitable distribution is defined as a division of assets considered reasonable and fair to all parties. No spouse wants to feel like they are getting less than they should, and this is why an experienced attorney is needed to figure out what the equitable division requires.
Marital Property vs. Non-Marital Property
Marital property is made up of any assets, debt, or intangible items that were acquired during the union. This can include a home purchased, any credit card debt acquired, or even the artwork of your children hanging on the fridge. Anything you and the other party deem has worth can be assessed and considered for property division.
Certain Factors Will Affect the Assessment of the Property
There are many things to be aware of when working towards equitable property division.
A judge will look at the following factors during the determination of marital property:
- The duration of the marriage
- The age, health, vocational skills, employability, earning capacity, and financial liabilities and needs of each spouse
- The contribution each spouse has made to the marital and separate property
- The value of each spouse’s separate property
- The estate of each spouse at the time of the marriage
- The tax and economic circumstances of the spouses at the time of the division
- The Social Security benefits available to each spouse
- If there is a prenuptial agreement in place
They will also look at any factors or circumstances that are unique and specific to your divorce to decide what is fair and equitable property division. No matter what the determination of fault may be, these considerations are required to be made by the court.
Non-marital property, also known as separate property, includes the following:
- Property that was owned by one spouse before being married
- Property acquired by a spouse in exchange for property acquired before the marriage
- Income from and appreciation of a property owned by the spouse before the marriage
- Awards that came from a lawsuit, such as pain and suffering and victim of crime compensation
- Gifts and inheritances
- The property the spouse acquired after an order of legal separation where the court made a final disposition of property
Determining Proper Value
The value of certain assets are very straightforward and easily defined by the court. The amount of bank accounts, investment accounts, retirement savings, and stock portfolios is easily determined and provided by the entities that manage those holdings. Property division is uncomplicated for these types of assets in a divorce settlement.
Then there are those assets that are much more difficult to define monetarily. What about heirlooms, or accounts that the other party was unaware of? How does child custody figure into this decision? How about shared items that cannot be split, like a country club membership? Inheritance? How do all of these factor into the determination of value for proper property division?
Important Facts You Need to Know
First, fair and equitable property division does not always mean equal division. You may or may not get half, but you will get what is reasonable to both parties. You should bring as much information as possible when establishing the value of assets in most cases.
Accounts that were once separate property could be considered part of the marital estate if both parties contributed funds during the union. This can include stocks, bonds, small business assets, 401K and other retirement accounts, and even properties improved during the marriage using a joint account.
GSRM Law is Here to Help
Our legal team is here to help you get a fair and equitable division of the things you enjoyed together but can no longer share after a divorce case. If you need help navigating the Tennessee courts, contact us at GSRM Law and find out just how our legal team will be able to help you.