In a divorce, courts generally distribute your marital property between you and your spouse. However, this can become an issue if you own assets outside of Tennessee.
To many, addressing this problem might seem difficult because not every state distributes property the same way. This raises an important question: how do Tennessee courts handle property in other states?
How is property divided in Tennessee?
In a divorce, Tennessee courts generally divide your marital property, which refers to the assets and debts you acquired during marriage. Your separate property, such as property owned before marriage, is typically not divided. Under state law, the court must divide your property using equitable distribution.
This means you and your spouse will receive a fair share of property, which might not always be equal. To decide what is fair, the court may consider factors like the length of your marriage, each spouse’s financial situation and each spouse’s contributions to the marriage.
Can courts divide property in other states?
Tennessee courts may divide out-of-state property. Courts cannot directly change title to out-of-state real property, but can order you and your spouse to execute the necessary documents. To help the court divide your assets fairly, you might be ordered to:
- Sign a deed or settlement agreement transferring ownership
- Sell and divide the proceeds according to the court’s instructions
- Continue co-owning the property with the option to buy out the other’s share
Alternatively, the court might award the property to you and give your spouse marital property of equal value. Tennessee courts may enforce your compliance through contempt if you do not follow their orders.
Life after divorce
Understanding how courts use equitable distribution to assist spouses after a divorce can help you prepare for the future. With a fair share of assets, you can start a new chapter in your life with peace of mind.