How Tennessee Divides Property in a Divorce (2026)

Tennessee is an equitable distribution state — marital property is divided fairly, but not necessarily equally. Tennessee Code Annotated (TCA) §36-4-121 governs property division.

Marital vs. Separate Property

Marital Property

All property acquired by either spouse during the marriage — with limited exceptions:

• Income earned during the marriage
• Real estate and personal property purchased with marital income
• Retirement contributions made during the marriage (the marital portion)
• Business appreciation and interests built during the marriage

Separate Property

Excluded from equitable distribution:

• Property owned by one spouse before the marriage
• Gifts made to one spouse individually
• Inheritances received by one spouse — even during the marriage — kept separate
• Property acquired in exchange for pre-marital separate property
• Income from or appreciation of separate property (if kept separate)

Hybrid Property

Property that is partly marital and partly separate — common with homes owned before marriage but paid down with marital income, or retirement accounts with both pre-marital and marital portions.

Equitable Distribution Factors (TCA §36-4-121)

For contested cases, Tennessee courts consider 13 statutory factors:

1. Duration of the marriage
2. Age, physical, and mental health of each spouse
3. Vocational skills, earning capacity, and employability of each spouse
4. Tangible and intangible contributions of each spouse to the marital estate
5. Value of property set apart for each spouse
6. Economic circumstances of each spouse at the time of division
7. Liabilities and needs of each spouse; opportunity of each to acquire future income
8. Tax consequences of proposed division
9. Each spouse's contributions as homemaker
10. Social Security benefits (if one or both are entitled)
11. Whether either spouse is the custodial parent and needs to occupy the family home
12. Whether assets are liquid or non-liquid
13. Any other relevant factor

The Role of the MDA in Property Division

In an uncontested divorce, the MDA governs all property division. Tennessee courts give substantial deference to a properly executed MDA. The judge is not required to independently determine "equitability" if both parties have voluntarily signed the MDA.

A well-drafted MDA provides certainty and avoids litigation. It should:

• Identify each asset specifically
• State who receives each asset
• Address all debts and allocate responsibility
• Include indemnification language for assigned debts
• Address retirement account division with QDRO or IRA transfer instructions

Dividing Common Assets

Family Home

Three options:

1. One spouse keeps it — equity buyout, refinancing, deed transfer at county Register of Deeds
2. Sell — divide proceeds as agreed in MDA
3. Deferred sale — one spouse (often custodial parent) stays for a set period

Retirement Accounts

• Employer plans (401k, pension): QDRO required — a separate court order submitted to the plan administrator after the Decree
• IRAs: Transfer incident to divorce — no QDRO needed; directly transferred to new IRA
• Describe in MDA with plan name, account number, division formula (percentage or dollar amount as of a date)

Vehicles

Assign each vehicle in the MDA. Title transfer at Tennessee DMV. Refinance any loan into the keeping spouse's name.

Business Interests

The marital appreciation of a business is marital property. Requires professional valuation for complex situations.

Tennessee's 4 Types of Alimony

Tennessee courts (and MDA parties) must specify which type of alimony applies.

Courts may award more than one type simultaneously. In the MDA, specify the exact type, amount, payment schedule, and duration.

Last reviewed: March 2026 | TCA §36-4-121 (property division) | TCA §36-5-121 (alimony) | tncourts.gov

Last reviewed: March 2026 · Verify current fees and forms with your local court before filing.