Like many other states, Tennessee is an equitable distribution state. The goal during property division proceedings is to establish a fair arrangement. Factors ranging from the length of the marriage and the health of the spouses to child custody arrangements can influence the most reasonable and fair way to divide the marital estate.
Before people begin discussing who keeps their shared home, how they’ll want to address a financed vehicle and similar issues, they must first determine what assets are subject to division as marital property. What resources do spouses legally need to “share”?
Timing matters more than ownership records
Frequently, people make the mistake of presuming that any assets they holding their own name without directly sharing joint ownership with a spouse are their separate property. However, that is not true.
Bank accounts in the name of one spouse, a vehicle titled in the name of one spouse and other assets let me seem to belong to one person on paper may actually be marital property. When people acquire their assets and the money or lines of credit they use determine if those assets are marital or separate.
Property that spouses owned before marriage may remain their separate property if they avoid commingling. Inheritances and gifts from outside parties may also be separate property. People can even protect separate property by signing a marital contract.
Typically, resources acquired during a marriage or with marital income are subject to division, regardless of whose name is on any official ownership paperwork. Conducting a thorough financial review is often necessary to determine what assets are subject to division and which are separate property. Spouses was legal guidance may find it easier to understand property division rules and to effectively prepare for divorce accordingly.