How Tennessee Courts Divide Multiple Properties in Divorce

In a divorce, some people have little to divide. They may not even have a house to call their own. Then there are those with substantial real estate holdings, including multiple vacation homes. This is fine when a couple is married, but when the relationship ends in divorce, things can get complicated. Many wealthy couples have prenuptial agreements that outline how their assets will be divided in the event of a divorce. In the absence of one, assets have to be divided fairly under Tennessee law.

Multiple properties and vacation homes are evaluated individually and divided equitably. But who gets what? While this is ultimately up to the court to decide, here is a detailed look at what the law says about property division.

What the Law Says

Tennessee Code § 36‑4‑121 outlines the division of marital assets in a divorce. In divorce proceedings, the court may equitably divide, distribute, or assign marital property between spouses without regard to marital fault. Marital property is defined broadly to include all real and personal property acquired by either or both spouses during the marriage up to the date of filing the divorce complaint.

Separate property is not split in a divorce. Separate property is defined to include property owned by a spouse before marriage, property acquired during the marriage by gift or inheritance, or income from or appreciation of separate property.

Determining the Next Steps

With the above in mind, the court will determine if the properties are marital or separate property. If one spouse owned the property, it may remain with that spouse. However, if marital funds were used to maintain the properties, then the assets become commingled. This means they can become marital properties and subject to a split in a divorce.

Valuation is the next step. Each property is appraised to determine its fair market value. Any mortgages or liens are considered, and the net equity is calculated.

If the vacation homes are considered marital property, there are several ways to divide them. Sometimes one spouse keeps the primary home, and the other holds the vacation home. If both properties are hard to divide, the court may order them sold, with the net proceeds split equitably. If a property cannot be easily divided, the court may award the property to one spouse and compensate the other with cash or other assets of equivalent value.

Factors

When dividing property, the court will consider these factors:

• Contribution of each spouse to purchase and maintain the properties
• Length of the marriage and the financial circumstances of each spouse
• Custody of minor children, as sometimes the primary residence is given to the custodial parent
• Tax implications, mortgage responsibilities, and other financial burdens

Get Experienced Guidance for Complex Property Division

Having a lot of assets can be a blessing while married, but a curse in a divorce. Splitting valuable assets is not easy. A divorce attorney from David L. Scott in Murfreesboro, TN, can assess your situation and help you with property division details for even your most complicated assets. Schedule a consultation today. Contact us via (615) 896-7656 or online here.