Is Tennessee a community property state? During a divorce, many people believe that the division of assets is “50/50.” Tennesee is an equitable distribution state, meaning that while it might start as half, Tennessee law considers several factors, including income and future earning capacity—when dividing property. Equitable may mean, in some cases, one spouse receives a higher percentage of the property than the other. An experienced divorce law lawyer at Cordell & Cordell can help negotiate fair and equitable property division and, if necessary, represent your rights during litigation.
Community Property vs. Equitable Distribution
As of 2024, only nine states are community property states:
These states generally divide marital property equally between the married couple going through a divorce. The other states are known as “equitable distribution” states. That is, the laws require a fair and equitable – not necessarily equal – distribution of marital property.
How Property is Divided in a Tennessee Divorce
Tennessee laws factor in your current income, separate property, and future earning capacity to determine an equitable distribution of assets and liabilities. For example, if the husband earns 40 percent of the income and the wife earns 60 percent of the income, neither party has separate property, and both parties are expected to stay in the same financial position—the husband would receive 60 percent of the marital assets, while the wife would receive 40.
However, this is not set in stone. If the parties can agree on property distribution, they might also agree to split the property 50/50, or the husband might give the wife a higher percentage for the benefit of the minor children if she agrees to primary custody. This situation can also work in reverse.
In most circumstances, it is better for the spouses to work out a property settlement between themselves. One drawback of property distribution, whether under community property laws or equitable distribution laws, is that the parties may not be allowed to keep the property they wish. For example, a husband may wish to retain his retirement account, in that case, he may be able to “trade” another asset of equal value with the wife.
Why Property Division Matters
Property division can affect a spouse’s financial future after divorce, especially in long-term marriages where the married couple has accumulated significant assets. Before the division of marital property, the spouses must determine the types of property they possess. Certain property in Tennessee is separate property. However, separate property can be commingled or transmuted to become marital property subject to equitable division.
Separate property includes:
- Any property owned prior to the marriage
- Property exchanged for separate property, even after marriage, so long as the separate property is not commingled or transmuted
- Profits or appreciation from separate property
- Damages awarded in a civil lawsuit in your name only
Any of these could become marital property if you commingle them or transmute them – that is, you used marital funds for their upkeep, or you treated the property as marital property. If there is a question of whether property was commingled, financial advisors and forensic accountants can determine whether separate property became marital property.
Why Work with Cordell & Cordell
Property division can come with all sorts of unexpected pitfalls. The experienced divorce lawyers of Cordell & Cordell can use their knowledge to guide you through a fair and reasonable property settlement.
Client Experience
“My lawyer is a standout. He is responsive and attentive. He was good at giving input and feedback. When it comes to men’s divorces, My lawyer knows what he is doing and brought his experience to the table.” — Dolphus D.
“I felt protected and secure with my lawyer. She earned my confidence and that is really hard to do. I feel everything went well.” — Jeffrey S.
“She was amazing. Everything was all around great. The communication by my lawyer was fantastic. You guys are top tier.” — Chase P.
Contact Us for Help with Your Tennessee Property Division
Blended families have become more common, which could mean the new spouse may receive a portion of the property you were awarded in your first divorce—in the event of a divorce. It’s becoming more common to get married later in life, which means you could have a significant amount of separate property. If you have a significant amount of separate property, you might consider drafting a prenuptial agreement to protect that property if you are considering marriage.
Cordell & Cordell is a national family law firm that guides individuals through a range of family law issues. Contact our team today at 866-323-7529 or fill out our online contact form to schedule an initial consultation.
Disclaimer: This page serves as a resource and is not to be taken as legal advice.
