Planning for Financial Ripples from Tennessee Divorce
Divorce is, inevitably, a very challenging and emotional process. Like any major life change or decision, the effects of divorce can ripple out into the future in countless ways. If you are going through a divorce in Tennessee, anticipating these financial ramifications and strategically planning how to handle the changes to come is crucial to building a stable future. This article will help readers begin thinking about some of the most pivotal actions they can take to protect themselves financially in the face of a divorce.
Equitable Distribution (TN Code § 36-4-121 (2021)
First, it is important to understand that under Tennessee divorce law, each partner in a marriage is entitled to a fair, or “equitable” division of property. “Equitable” does not necessarily mean “equal.” If called upon to do so, the court will divide the couple’s marital property in a way that it deems to be fair and equitable. “Marital Property” is that property that was acquired during the course of the marriage. Any assets owned prior to the marriage are generally considered to be “separate” property and will not be subject to division.
Gather Your Financial Documents
A necessary step in preparing for financial change is to understand where you currently stand. Gather all relevant financial documents, including (but certainly not limited to):
- Credit card statements
- Bank statements
- Pay stubs
- Mortgage statements
- Tax returns
- Investment account statements
Really Consider Your Current Situation
What debts are you and your spouse carrying? What about your assets? Locate your assets. Take a comprehensive inventory. Include items like real estate, art, jewelry, collective items, cars, boats, etc. Understand your debt load. Do you have a mortgage on your home? What about a loan on your car? Consider credit card debt, and any other debts you might find yourself carrying. Understanding the value of your assets and the weight of your debts will be very important in coming away from property division negotiations and court proceedings with a truly equitable division.
Child Support and Alimony
When you are planning for your new life moving forward, remember that child support and alimony may play a role. Will you be looking to receive child support and/or alimony? Will your former spouse be seeking such payment? Remember, children are legally entitled to receive some amount of support from both parents – but spouses are not guaranteed to be awarded alimony. If you believe your spouse will be requesting an alimony payment, it is wise to discuss your situation with an attorney so you know what to expect and how you can best approach the issue. If you are planning on receiving an alimony payment – again, it is wise to discuss your situation with an attorney so you can understand whether that alimony payment is likely to come, and how much you might generally be able to receive. Whatever life changes you may need to make after the divorce due to a change in income, it is best that you can anticipate what those changes will need to be and plan accordingly.
Contact Fort, Holloway & Rogers
When facing a divorce, engaging with experienced Franklin property division and divorce attorneys from Fort, Holloway & Rogers can help you to ensure that you fully understand the road ahead, and that you have experienced counsel helping you through it all. Contact our office today to begin discussing your own case.
