Married couples share everything, and that includes financial expenses and income. When two people decide to split up, this usually means their finances too. How property is divided between divorcing couples is a common question for divorcing parties to have. In Tennessee, state law governs family law matters such as divorce and asset division.
One big slip-up for divorcing couples is the incorrect valuation of assets or liabilities considered marital property. Marital property is exactly what is sounds like, the assets or liabilities that are equally shared between two people before the time of their divorce. When an asset or liability is incorrectly valued it can throw off the entire proceedings of the financial division. For example, let’s say property obtained during the marriage, such as a piece of art, was grossly undervalued. In that case, the party giving up that piece of art would likely not get enough in exchange.
This is where a divorcing party could lose monetary value and not even know it. Let’s say that the piece of art was valued at $5,000 but it really it is worth $15,000. The art would be bartered for other items that are actually valued at $5,000, let’s say $5,000 worth of stock in a company. One party receives the $5,000 stock and one party receives a $15,000 piece of art. This is where inequities could happen in the property division proceedings. It is highly recommended that couples correctly value their assets and liabilities to ensure equitable division during the property division negotiations.
Steven C. Girsky ensures that these seemingly small details are not overlooked to become a big deal during and after negotiations. Using forensic accountants, we comb through every detail of the assets to try to ensure they are all accounted for correctly. Under Tennessee law, equitable division is the method by which courts divide property amongst divorcing properties. However, equitable division does not necessarily mean a 50/50 split.
Our law firm’s website contains more information on equitable division and many other issues that can affect divorcing couples.