Property Division in Divorce, Memphis, Tennessee

Tennessee is an equitable distribution state. That means marital property is divided fairly, though not necessarily equally. Understanding the difference between marital property and separate property, and knowing how Tennessee courts define equitable, is essential before you agree to anything.

Marital Property vs. Separate Property

Marital property is generally everything acquired during the marriage, regardless of whose name it is in. Your spouse’s 401(k) that they contributed to for twenty years of marriage is marital property even though your name is not on the account. The house you bought together is marital property even if only one of you is on the mortgage.

Separate property is what you owned before the marriage, or what you received as a gift or inheritance specifically to you during the marriage. Separate property is yours to keep, with two important caveats. First, if you have commingled separate property with marital assets, for example by depositing an inheritance into a joint account, it may have lost its separate character. Second, the appreciation in value of separate property during the marriage may be marital in Tennessee.

How Tennessee Courts Divide Property

T.C.A. § 36-4-121 governs equitable division. Courts consider the length of the marriage, each party’s contribution to the acquisition of marital property including homemaker contributions, each party’s economic circumstances at the time of division, the value of separate property each party retains, and the tax consequences of the proposed division, among other factors. Fault can also be considered.

The Family Home

The marital home is often the most significant and most emotional asset in a divorce. The options are: one spouse buys out the other and refinances; the home is sold and proceeds divided; or the parties agree to defer sale for a period, which is common when children are school-age. Each option has financial and tax implications that should be fully understood before you commit.

Business Interests and Complex Assets

If you or your spouse own a business, professional practice, or significant investment portfolio, valuation becomes a contested issue. A business appraisal may be necessary. We work with qualified business valuators and financial experts when the case calls for it. For high-stakes cases, see our page on High-Asset Divorce in Memphis.

William W. Jones IV is a Memphis family law attorney, Rule 31 Listed Family Mediator, and Super Lawyers selectee every consecutive year from 2014 through 2025. Licensed in Tennessee (BPR 022869) and Mississippi (BPR 100707), he practices at The Jones Law Firm, 5100 Poplar Ave, Suite 708, Memphis, TN 38137. Call (901) 761-5353 or visit midsouthdivorce.com.