Debt & Property Division

We help clients navigate the equitable distribution of assets and liabilities during divorce, ensuring fair debt & property division.

Property Division

Regarding property division, it is your responsibility to tell us about all of your assets.   You will also provide us with copies evidencing ownership of these assets.

The Court will first determine if your property is separate or marital. Fault is not a factor in property division.

Moreover, separate property is property a spouse usually acquires before the marriage, such as through an inheritance or gift, which the spouse keeps separate from the other spouse. Unless you prove this item became marital property through transmutation or commingling, the court will allow that party to retain the property separately. Transmutation or commingling can occur in many ways, including putting your spouse’s name on a bank account or Deed. We will discuss this if it is an issue in your divorce.

Marital property is considered property you acquired during the marriage. It can also include an appreciation in the value of your spouse’s separate property.

Marital property means all real and personal property acquired by either or both spouses. Sometimes, a spouse’s separate property may become marital depending on how the parties treated it during the marriage. Furthermore, recovery in personal injury cases, worker’s compensation, and disability actions may also be considered marital property.

Tennessee Law Determines How to Divide Marital Property:

Tenn. Code § 36-4-121 (c) In making equitable division of marital property, the court shall consider all relevant factors including,

(1) The duration of the marriage;
(2) Age, physical and mental health, vocational skills, employability, earning capacity, estate, financial liabilities and financial needs of each of the parties;
(3) Tangible or intangible contribution by one (1) party to the education, training or increased earning power of the other party;
(4) Relative ability of each party for future acquisitions of capital assets and income;
(5) Each party contributes to the acquisition, preservation, appreciation, depreciation, or dissipation of the marital or separate property. This includes contributions as a homemaker, wage earner, or parent. The contributions of a party as a homemaker or wage earner receive equal weight if each party fulfills its role.
(6) Value of the separate property of each party;
(7) Estate of each party at the time of the marriage;
(8) Economic circumstances of each party at the time the division of property is to become effective;
(9) Tax consequences to each party, costs associated with the reasonably foreseeable sale of the asset, and other reasonably foreseeable expenses associated with the asset;
(10) Amount of social security benefits available to each spouse; and
(11) Such other factors as are necessary to consider the equities between the parties.

Debt Division

The court will consider these factors in determining the division of debt:

• Whose debt it is;
• Why it was incurred;
• Who benefited from the asset purchased or debt monies;
• Who will ultimately receive the asset purchased;
• Who can afford to pay the debt;

During your marriage, most of your debts were probably incurred jointly.  That means both of you are legally responsible for the debt.  The Court will determine who pays what.  However, the creditor can sue you if your spouse does not pay the debt.  If this were to happen, you could file a Petition for Contempt and have your spouse held in contempt for failure to pay.

Kane & Crowell, PLLC are easily accessible and dedicated Family Law Attorneys located in Lebanon, Tennessee. We are renowned for our expertise in divorce, prenuptial agreements, custody, child support, alimony, post-divorce, division of assets and debts, and mediation. We practice Family Law providing divorce representation in Wilson, Macon, Trousdale, Smith, and Sumner Counties.