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Under no circumstances should this be
considered legal advice, nor does it substitute for legal
consultation. The responses to frequently asked questions are
intended to be general statements. The correct answer to any legal
question is: "It depends." Often there are exceptions to most law,
especially issues concerning family law. Also, judges may interpret
the law differently. The law changes over time. Anything written here
could have changed between the time it was written and when it is
read. Without exception, seriously consider consulting with a lawyer
before you make any decision affecting your legal rights.
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Who will divide our property?
If you and your spouse are able to agree on how to divide your
property, then the agreement will be documented with what is
called a Marital Dissolution Agreement. If you are unable to
agree, you will go to court, and the judge will decide and order
an equitable distribution of your property.
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What is an equitable distribution, and is Tennessee an
equitable distribution state?
Equitable means fair, just, and reasonable, based on the
factors set out in the law. Yes, Tennessee is an equitable
distribution state. While equitable does not mean equal, most
judges will admit that they begin the trial at 50/50 and move one
way or the other based on the evidence and arguments
presented.
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What factors does a court consider in deciding
property division?
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The duration of the marriage;
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The age, physical and mental health, vocational skills,
employability, earning capacity, estate, financial
liabilities, and financial needs of each of the parties;
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The tangible or intangible contribution by one (1) party
to the education, training, or increased earning power of the
other party;
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The relative ability of each party for future acquisitions
of capital assets and income;
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The contribution of each party to the acquisition,
preservation, appreciation or dissipation of the marital or
separate property, including the contribution of a party to
the marriage as homemaker, wage earner, or parent, with the
contribution of a party as homemaker or wage earner to be
given the same weight if each party has fulfilled its
role;
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The value of the separate property of each party;
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The estate of each party at the time of the marriage;
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The economic circumstances of each party at the time the
division of property is to become effective;
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The tax consequences to each party; and
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Such other factors as are necessary to consider the
equities between the parties.
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Does one spouse have to be at fault to get a
divorce?
No, if the parties agree to the divorce and settle the case
without a trial, which is called an irreconcilable differences
divorce.
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Can I get more money if my spouse is at
fault?
Technically, no. Fault is only a factor for deciding alimony.
As a practical reality, however, if a judge is presented with
evidence of fault with respect to a request for alimony or
attorney's fees, there is a common belief that the evidence
ultimately could be persuasive.
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Is it different in other states?
Every state has different laws.
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By the way, can my spouse share in my inheritance from
my grandmother?
Inheritance is separate property. There are things you can do
to prevent inheritance from becoming marital property subject to
equitable division. In order to protect your inheritance, see an
attorney just in case -- especially if it is a large sum of
money. Do not commingle the money by putting it in a joint bank
account. Do not spend the money on your house if your house is
owned jointly. It is important to note, however, that the amount
of separate property is a factor in dividing marital
property.
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How does the court determine the value of a marital
asset?
Some types of property have a readily ascertainable value,
such as a bank account or publicly traded stock. For other
assets, if the parties cannot agree on the value, the court will
decide. The parties may testify and give an opinion. For some
assets, however, the most persuasive proof might be provided by
an appraiser or other qualified expert. The most common examples
of property that might require professional testimony include
businesses, pensions, jewelry, and real estate. This can become
relatively expensive, especially if both parties hire
experts.
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Once a divorce action is filed, can a spouse be
restricted from dealing with marital property or his or her
non-marital property?
The right of a spouse to transfer, assign, or convey property
is not restricted unless the spouse is specifically enjoined by a
court from doing so. If one party is concerned that the other
party will give away, hide, or foolishly spend money, the party
may ask the court to enjoin certain spending activities to
prevent dissipation and preserve the assets.
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What are some examples of "dissipation" of
assets?
Spending money foolishly. Giving money away without benefit to
the marital estate, such as buying jewelry for a paramour.
Gambling excessively. Overly aggressive investing. Using money
for an improper purpose. Courts do not look favorably upon such
activities.
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What is "marital property"?
"Marital property" means:
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all real and personal property;
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both tangible and intangible;
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acquired by either or both spouses during the course of
the marriage;
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valued as of a date as near as reasonably possible to the
final divorce hearing date;
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including income from, and any increase in value during,
the marriage;
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property determined to be separate property if each party
substantially contributed to its preservation and
appreciation; and
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the value of vested pension, retirement, or other fringe
benefit rights accrued during the period of the marriage.
"Substantial contribution" may include, but is not
limited to, the direct or indirect contribution of a spouse as
homemaker, wage earner, parent, or family financial manager,
together with such other factors as the court having jurisdiction
thereof may determine.
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What is considered "non-marital
property"?
Tennessee calls this separate property. "Separate
property" means:
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All real and personal property owned by a spouse before
marriage;
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Property acquired in exchange for property acquired before
the marriage;
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Income from and appreciation of property owned by a spouse
before marriage, except when characterized as marital
property by means of another legal theory (ask your
attorney); and
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Property acquired by a spouse at any time by gift,
bequest, devise, or descent (which can include gifts from one
spouse to another, such as jewelry or a car).
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What is the process by which property and debt are
distributed between the parties in a divorce trial?
In very general terms, each party is first awarded his or her
separate property. Then the marital estate is divided according
to the factors listed above. Finally, the debt is divided. Debt
secured by specific property usually is given to the spouse
receiving that property. Finally, a spouse will usually receive
the debt which that spouse incurred after separation.
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If the spouses have not kept their non-marital
property separate, but they have combined their ownership, how
does the court decide on property division?
Spouses often commingle their marital and non-marital
property. If separate property becomes commingled, it may lose
its status and become marital property. This can cause difficult
issues for the court. If separate property can be traced easily,
the court is more likely to award it to the original spouse. If
it cannot be easily traced, the court is less likely to award it
as separate property. Even if a court finds the property was once
separate but became marital property, the court will consider
other property division as part of the equation and look to make
an equitable distribution.
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Is a professional license or degree an asset subject
to valuation and division?
No. The license or degree itself cannot be divided. The
professional practice or certain assets contained therein could
be subject to valuation and division in certain
circumstances.
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What about retirement accounts, pensions, and other
deferred compensation?
Retirement benefits can be considered marital property and
subject to division by the court to the extent that they were
acquired during the marriage. In certain circumstances,
appreciation could also be divided. These issues can be very
complex.
-- Miles Mason, Esq., Crone &
Mason, PLC
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