Marriages mean that the finances of two people become significantly intertwined over the years. As a married couple, you have almost certainly purchased items with the intention of sharing them, and you have likely depended on each other financially. So, when you decide to get divorced, all the ways that you are tied together financially will need to be separated.
The way that assets are divided during divorce depends on the state law where you are living. In Tennessee, the theory of equitable distribution is followed. This means that assets are not automatically split equally between spouses. Instead, marital assets are divided in a way that is considered to be fair and just, based on the circumstances.
What types of assets will be subject to division?
Only marital assets will be subject to division when a couple files for a divorce. Marital assets can come in almost any form and could include the family home, the cars and even pension plans.
What assets are considered marital assets?
Most property that is acquired after marriage is considered a marital asset. This is true with the exception of inheritances and gifts that are acquired by one spouse. It is important to note that property acquired before the marriage, and any income gained from it, will not be considered marital property.
While the concept of marital assets and equitable distribution seems relatively simple, in reality, asset division can become extremely complicated. This is why it is important that you understand the law so that you can get a fair divorce settlement.