Divorcing couples in Tennessee have many challenging discussions ahead of them. If they have children with each other, they need to find solutions for sharing custody. They also have to negotiate arrangements for sharing their property with one another.
Equitable distribution rules help protect the interests of both spouses by promoting a fair outcome for the property division process. Assets that are part of the marital estate are subject to equitable distribution rules if spouses cannot reach an agreement before going to family court. However, certain property may not be subject to division at all if it is technically separate property that belongs only to one spouse.
Which assets may be considered separate property during a Tennessee divorce?
Assets acquired before or after marriage
The resources that people own before getting married remain their separate property when they divorce. So long as they do not add their spouses as co-owners or give them full control over those resources, they can retain sole ownership of those assets after the divorce.
The same is generally true of any property acquired after separating from their spouses. Only property and income acquired during the marriage are subject to equitable distribution.
Resources protected by agreement
Couples sometimes sign prenuptial agreements before they get married. Others may negotiate postnuptial agreements during a marital relationship. Frequently, spouses earmark certain assets as separate property when negotiating marital contracts. Any assets designated as separate in a valid prenuptial or postnuptial agreement are typically exempt from division during divorce.
Inherited resources and gifts
Many people enjoy giving valuable gifts to their loved ones. Those who receive vehicles, money and other gifts from friends and family can usually treat those assets as separate property even if they received the gifts during their marriage.
Inherited property is also typically the separate property of the beneficiary or heir who receives those assets from an estate. As is the case with assets acquired prior to marriage, commingling can be a concern for gifts and inherited property. Spouses usually need to make a point of maintaining them as separate property to protect them from vulnerability in the event of a divorce.
Certain other assets, such as compensation granted to one spouse during a personal injury lawsuit can also remain separate property.
Identifying separate property can be a good starting point for those preparing for asset division during a Tennessee divorce. Separate property may become a nest egg that helps a divorced individual rebuild their finances after their divorce.
