When a relationship ends, one of the most challenging aspects is dividing up a household full of memories and all your belongings. Dividing property during a divorce carries emotional weight, as certain possessions may hold sentimental value that transcends their fair market price.
Additionally, underlining this is also the anxiety about making sure that you and your children will have the financial means to support yourselves in the years ahead. Our Franklin marital property division lawyers understand that this situation can be a sensitive one.
Tennessee’s property division laws are designed to protect the children and ensure that both parties receive a fair outcome. However, understanding what qualifies as marital versus separate property and navigating the legal process can be complicated.
At Durak Law, our team has extensive experience helping individuals retain what they’ve worked hard to achieve while finding fair compromises when situations become challenging. Call our Franklin family law attorneys at (615) 812-2829 to learn more about how we can help with marital property division.
What is Property Division in Tennessee?
Property division refers to the process of distributing assets and liabilities between spouses during a divorce. In Tennessee, property division can be resolved either by the divorcing couple or by the court.
If you and your spouse can reach an agreement—whether through your attorneys, divorce mediation, or collaborative divorce—you can document this arrangement in a marital dissolution or settlement agreement. However, if an agreement cannot be reached, the court will step in and make the final decision on how to divide the property.
In a divorce, both parties are legally obligated to disclose their assets, and the division process must follow the principle of fairness, not favoritism. Whether you’re dealing with real estate, retirement funds, or business interests, the goal is to ensure that both parties receive a just portion of marital assets.
Tennessee follows the equitable distribution principle for property division in divorce cases. This means that marital property is divided in a way that is fair and reasonable, though not always a 50-50 split.
When determining how to divide property equitably, Tennessee courts consider several key factors, including:
- Length of the marriage
- Age and physical or mental health of both spouses
- Earning capacity and potential for future income or asset acquisition
- Financial needs and liabilities of each spouse
- Contributions to the marriage, including financial support and non-financial contributions such as homemaking
These are just a few examples of the many factors the court may weigh when making decisions about property division. Every case is unique, and the court strives to reach a solution that is fair based on the specific circumstances of each couple.
What is Considered Marital Property and Separate Property in Tennessee?
In Tennessee, marital property includes assets acquired during the marriage, while separate property refers to assets owned individually before marriage or received as gifts or inheritance.
Marital Property
Marital property includes assets and debts acquired by either spouse during the marriage, no matter whose name appears on the title. This can include:
- Homes and real estate
- Retirement accounts or pensions
- Bank accounts and investments
- Business interests or ownership stakes
Separate Property
Separate property refers to assets owned before the marriage or those acquired individually through gifts or inheritance. Examples include:
- An inheritance left to one spouse
- Property purchased before the marriage
- Compensation from a personal injury settlement
- Tennessee courts carefully assess whether an asset qualifies as marital or separate property, as only marital property is subject to division in a divorce.
What is Equitable Distribution?
Tennessee follows the principle of equitable distribution, which means property is divided in a fair manner, and not necessarily equally. While an equal division would involve awarding 50% of the marital assets to each spouse, often referred to as a 50/50 split, it’s common for settlements and trial outcomes to approach this ratio.
Many spouses are more focused on achieving a fair outcome rather than a precise mathematical division. However, some may be particularly concerned about ensuring an exact 50/50 split. In divorce trials, judges typically start with an equal property division and then make adjustments, increasing or decreasing a spouse’s share based on Tennessee’s property division factors.
In most cases, instead of a 50/50 split, the court considers several factors to determine what is fair, such as:
- Length of the marriage: Longer marriages may result in a more balanced division.
- Contributions of each spouse: This includes both financial contributions and non-financial efforts like homemaking.
- Economic circumstances: Each spouse’s financial stability after the divorce is assessed.
- Future earning potential: A spouse with higher earning potential may receive a smaller share of assets.
The court’s goal is to ensure that both spouses can maintain a stable financial future following the divorce.
How Will My Marital Property Division Attorney Determine the Property Value?
Property division is often one of the most contentious aspects of a divorce. Disputes over property division can be at the heart of prolonged conflicts between couples embroiled in divorce litigation, particularly when one spouse feels they are not receiving a “fair” share of the marital assets.
Before any attempt is made to equitably divide marital property, it is essential to accurately assess the true value of the couple’s marital estate.
If one spouse or the couple jointly owns only tangible and easily valued property, this assessment may be relatively straightforward. However, if the marital estate includes intangible assets, items with fluctuating values, belongings of sentimental significance, or difficult-to-value assets, the valuation process can become significantly more complex.
A thorough valuation is crucial to safeguarding your rights to the wealth you have accumulated. It is often necessary to enlist the help of valuation experts to ensure your interests are adequately protected.
Property division lawyers follow several steps to determine the value of your assets:
- Real Estate Appraisals: Professional appraisers assess the value of homes and other real estate.
- Business Valuations: Experts evaluate the worth of business interests, including future revenue potential.
- Financial Document Review: Lawyers review financial statements, tax returns, and retirement accounts.
- Consulting Experts: Financial planners and accountants may be involved to ensure accurate valuations.
Having precise valuations helps avoid disputes and ensures both parties receive their rightful share. As Franklin marital property division lawyers, our role is to guide you through the often challenging process of business valuation and asset division.
Whether you own a business or are looking to figure out how much your ex-spouse’s business is worth, we will provide a thorough explanation of the consequences associated with your available options.
If you’re facing a complex, high-asset divorce, you need an attorney who understands the intricacies of Tennessee matrimonial law and has access to top-tier business valuation experts and forensic accountants. We bring strong negotiation skills, extensive experience in resolving complex disputes, and a commitment to protecting your interests.
What is the Process of Dividing Property in Tennessee?
The court follows a specific process to ensure that all assets and property are accounted for during property division. Your and your spouse’s assets will go through four distinct stages:
Identification
The first step is to locate all assets owned by either spouse. This can sometimes require detective work, especially if one spouse is attempting to conceal assets, such as hiding money in a sock drawer. Judges typically frown upon such behavior, which is why we prioritize finding any hidden assets right away.
Categorization
Once identified, each asset must be classified as either separate or marital property depending on how and when it was obtained. In general, property acquired before the marriage or through gifts or inheritance during the marriage is considered separate property.
In contrast, marital property includes any assets acquired by either spouse during the marriage, such as retirement benefits, even if they vest after the marriage ends.
Valuation of Marital Assets
Next, the assets must be appraised and then given a fair market value. This process can be straightforward for items like cars, but it can be more complex for assets like real estate, especially if the property’s value is expected to appreciate over time.
Negotiation or Mediation
Couples may try to reach an agreement through negotiation or mediation. Negotiation and mediation offer more control over the outcome, but court intervention ensures fairness if disagreements persist. Having an experienced Franklin marital property division lawyer helps to ensure that the situation is handled with care while also ensuring that your assets are protected.
Court Intervention
If the couple can’t reach an agreement, the court will intervene. The judge will be most objective with the division of assets. For instance, they may consider the difficulty of dividing certain assets.
For instance, in a case where one spouse started a business in the course of the marriage, it would be easier to award the entire business to them and in turn give other property or money to the other spouse in a way that compensates for their marital interest in the business.
Distribution
Finally, the marital assets must be allocated to one spouse or the other. This stage can present unique challenges, particularly with non-liquid assets (those that would lose significant value if sold immediately) and businesses.
If one spouse is awarded such an asset, it may be difficult to balance the division with other property allocations to the other spouse. Debts accumulated during the marriage are also divided between the spouses.
Having an experienced Franklin marital property division lawyer on your side helps to ensure that the process is fair and that your assets and rights.
How Can I Find a Knowledgeable Franklin Marital Property Division Lawyer For My Case?
Choosing the right property division lawyer is important if you want to get a fair outcome. Here are some tips to help you choose:
- Experience: Look for a lawyer who is experienced in handling complex property division cases.
- Knowledge of Tennessee Law: Ensure your attorney understands the nuances of Tennessee’s family law.
- Track Record: Check for a history of favorable outcomes in property division cases.
- Negotiation and Communication Skills: A good lawyer excels in both negotiations and courtroom advocacy.
- Expertise in Litigation: If your case goes to court, your attorney should have the skills to represent you effectively.
An experienced Franklin marital property division lawyer will help protect your rights and guide you through each step of the property division process.
Why Choose a Franklin Marital Property Division Lawyer at Durak Law?
At Durak Law, we specialize in handling property division cases with a commitment to fairness and precision. Here’s why families trust us:
- Extensive Experience: Our legal team has a proven track record in navigating Tennessee’s property division laws.
- Personalized Service: We personalize our approach to meet the unique needs of each client.
- Strong Advocacy: Whether negotiating a settlement or litigating in court, we fight for our clients’ best interests.
- Handling Complex Cases: From high-net-worth divorces to business ownership disputes, we have the expertise to manage even the most intricate cases.
Divorce is never easy, but with our Franklin marital property division lawyers by your side, you can move forward with confidence, knowing that your assets will be handled fairly and professionally.
Call the Franklin Marital Property Division Lawyers Today at Durak Law to Discuss Your Case
Dividing property during a divorce can be a complex and emotional process. With the right legal support, you can ensure that your financial future is secure. When you choose Durak Law to represent you, we will promptly put our extensive experience and resources to work for your case.
The sooner we review the essential information, the quicker we can develop a personalized strategy to address your case, aiming for the best possible outcome.
The Franklin marital property division lawyers at Durak Law want to help you achieve a fair property division that reflects your needs and goals. Contact us today at (615) 812-2829 to schedule a consultation and learn how we can assist you through every step of the process.
