A divorce can leave difficult questions about property. This is especially true when a couple owns a business and shares a family home. Each asset carries different financial and legal concerns. Therefore, a single arrangement may not work for everything. Tennessee’s property division rules provide a starting point for deciding ownership for those consulting divorce lawyers in Nashville.
How Does Tennessee Law Treat Marital Property?
Tennessee follows equitable distribution under Tennessee Code § 36-4-121. This means marital property must be divided fairly. A judge examines the circumstances of the marriage before deciding how the property should be allocated.
Marital property generally includes assets acquired during the marriage. This includes earnings, real estate, business interests, and retirement benefits. Separate property can include assets owned before marriage and gifts received individually.
The length of the marriage and each spouse’s financial circumstances can affect the division. Tennessee law recognizes contributions as a homemaker or parent alongside financial contributions.
What Happens to the Family Home in a Nashville Divorce?
A house purchased during marriage will qualify as marital property. A property acquired before marriage may remain separate. However, later contributions can affect its classification.
Consider a spouse who purchased a home before the wedding and continued paying the mortgage after marriage. The other spouse may raise a claim for the property if marital earnings funded renovations. The outcome depends on the applicable Tennessee law.
Selling or Keeping the Property
Selling the house and dividing the proceeds is a viable option. Another arrangement allows one spouse to retain the home and compensate the other for an agreed share of the equity.
The mortgage balance as well as the future maintenance costs deserve attention. A home that appears valuable on paper may carry expenses that make sole ownership difficult. Consulting the professional divorce lawyers in Nashville is an ideal option to decide ownership.
Courts may give special consideration to a spouse possessing the custody of the children when addressing the family home. It does not automatically determine ownership. However, continuity in the living arrangements of children can matter under Tennessee law.
How is a Business Divided During Divorce?
A privately owned business can be harder to divide than a bank account or a house. Its value may depend on equipment and the company’s ability to generate future income. A business started during marriage will generally require examination as a marital asset. A company established before marriage may have a separate-property component.
Business tax returns and ownership records help establish the financial position. An independent valuation professional may be needed when the spouses disagree about the company’s worth.
Choosing an Arrangement for Business Ownership
A divorce does not automatically require a business to close or be sold. One spouse may retain the company and compensate the other through cash or home equity.
A sale may be considered when a buyout is financially impractical or continued shared ownership would create ongoing disputes. Any agreement should address business debts and ownership transfers.
Dividing Retirement Accounts
Retirement benefits typically represent years of contributions. In Tennessee, retirement benefits accrued during the marriage are specifically included as property subject to division in a divorce. Divorce lawyers in Nashville can do a thorough job of evaluating the assets.
Understanding Retirement Transfer Orders
A Qualified Domestic Relations Order is needed for certain employer-sponsored retirement plans. It grants benefits to an ex-spouse. The order must be consistent with the rules and laws of the retirement plan.
Most individual retirement accounts have different rules for moving money. The correct method depends on the account type. Therefore, it is important for lawyers to carefully draft the divorce agreement and transfer documents.
Which Financial Documents Should Be Prepared?
Anyone working with divorce lawyers can benefit from collecting financial records before property negotiations begin. Reliable documentation helps establish ownership and identify outstanding liabilities. The useful records include the following.
- Property deeds and recent home valuations
- Business tax returns and ownership agreements
- Retirement account statements
- Bank statements and loan documents
Can Mediation Help Spouses Reach an Agreement?
Spouses may negotiate a property settlement through their attorneys. They can also use mediation to discuss disputed assets. Mediation with the help of divorce lawyers in Nashville gives both parties an opportunity to consider different arrangements.
A Tennessee court can decide the disputed property issues under applicable law when negotiations fail. Guidance from divorce lawyers can help clarify legal rights and prepare proposals for settlement.
A Clearer Financial Path After Divorce
Property division is an important aspect after the dissolution of your marriage. The decisions made about a house, business, and retirement savings can influence your financial security for years. Tennessee law provides a framework for fair distribution. However, the outcome depends on the assets. Careful preparation can help spouses make informed decisions.
Put Your Financial Future on Firmer Ground
Hairston & Associates provides personal legal guidance for divorce and property division matters. Our team can help you assess your circumstances, review available options, and work towards a fair resolution. Call 615-428-7345 or visit 615 Main Street, Suite 106, Nashville, TN 37206, to discuss your case.