Dividing real estate in high-asset divorces takes planning. Tennessee follows an equitable distribution rule, meaning the court splits property fairly, though not always equally. Marital property includes things bought during the marriage, while separate property includes things owned before marriage or received as gifts or inheritances.
Knowing the difference helps decide how to divide real estate.
Understanding Property Types
High-asset divorces often involve multiple homes, such as a primary house, vacation homes, or rental properties. Courts decide whether a property is marital or separate based on when and how it was purchased. If a couple bought a house during the marriage using shared money, it usually counts as marital property.
Figuring Out Property Value
Knowing a property’s true worth is important in a divorce. Professional appraisers help by estimating its current market value. A home’s value can go up or down, and sometimes, one spouse invests in improvements. Courts also consider these changes when deciding how to divide property.
Ways to Split Real Estate
Once they have the property valuation, spouses must figure out how to divide it. Options include selling and splitting the money, one spouse buying out the other, or both keeping joint ownership under an agreement. The best choice depends on finances, taxes, and personal preferences. One spouse may keep the house while the other gets assets worth the same amount.
Tax Effects
Taxes can play a big role in dividing real estate. Selling a home may lead to capital gains taxes, and the timing of a sale can affect tax bills. Planning ahead can help reduce tax problems.
Legal Factors
Dividing real estate in a high-asset divorce can be complicated. Lawyers who understand property division can help spouses understand state laws, obtain accurate property values, and ensure a fair process.