How to Protect Your Assets in Tennessee During a Divorce
Divorce can turn your financial life upside down, but it doesn’t have to. With the right steps and a solid plan, you can protect what you’ve built. This guide walks you through how Tennessee Divorce law views property and what you can do to keep your assets safe.
Know the Difference: Marital vs. Separate Property
Understanding how the law defines what’s yours–and what’s shared–is the first step.
What Counts as Marital Property?
Marital property includes almost anything acquired during the marriage: income, homes, retirement accounts, vehicles, even debts. Even if something is in your name alone, it may still be considered shared if it was purchased while you were married.
What’s Considered Separate Property?
Separate property usually includes anything you owned before the marriage or received individually as a gift or inheritance. However, keeping it separate is key, if it’s mixed with marital assets, it could lose its protection.
Tennessee’s Approach to Dividing Property
Tennessee uses an “equitable distribution” model, not a 50/50 split. Instead, the court looks at what’s fair based on things like income, contributions to the marriage, and future financial needs.
Keep Ownership Clear and Documented
Good records and smart decisions now can prevent major headaches later.
Prove What’s Yours
If you brought property into the marriage or received a personal gift, keep paperwork that proves when and how you got it. Titles, receipts, and account records go a long way in court.
Don’t Mix What Should Stay Separate
Putting separate money into a joint account or using it for marital expenses can blur the lines. Keep separate accounts and avoid using your assets for joint purchases.
Using a Prenup or Postnup
These legal agreements aren’t just for the wealthy–they’re smart planning tools for anyone.
Why a Prenuptial Agreement Matters
A well-written prenup spells out what each person brings into the marriage and how assets should be handled if things end. It can protect businesses, real estate, investments, and more.
What a Postnuptial Agreement Can Do
Didn’t get a prenup? No problem. A postnup can still define ownership and help avoid disputes if the marriage ends. It’s especially helpful if your financial situation has changed since you tied the knot.
Use Trusts to Add a Layer of Protection
Trusts can legally shelter assets from divorce—if set up the right way.
Trust Options That Can Help
Irrevocable trusts are commonly used to keep property out of reach during a divorce. Since the assets no longer technically belong to you, they’re often off the table in property division.
What to Think About When Creating a Trust
Trusts must be created with care, using the right language, selecting trustworthy trustees, and avoiding marital funds. Legal guidance is a must to make sure your trust does exactly what you intend.
Keep Track of Gifts, Inheritances, and Valuables
If something was meant for you alone, make sure you can prove it.
Don’t Throw Away the Paper Trail
Whether it’s a cash gift or an inherited vacation home, keep documentation. It helps show that the asset was meant for you alone, not the couple.
Get a Professional Valuation
Businesses, homes, and investments should be appraised professionally before divorce proceedings. Knowing what something is truly worth gives you a stronger position in negotiations.
Manage Your Financial Accounts Wisely
Separating finances can help you stay in control before, during, and after a divorce.
Keep an Individual Bank Account
Having your account, especially for inherited money or pre-marriage income, helps draw a clear line between what’s yours and what’s shared.
Be Honest About Your Finances
Trying to hide money or assets can hurt your credibility and even lead to legal trouble. Courts value honesty—and so does your attorney. Transparency gives you a stronger footing.
Don’t Make Financial Decisions You’ll Regret
Divorce is emotional, but reacting without thinking can cost you.
Why Hiding Assets Backfires
Trying to stash money away or transfer assets to someone else might seem like a smart move, but it’s not. Courts can penalize this behavior, and you may end up worse off than if you'd been upfront.
How Bad Decisions Can Affect Your Case
Big purchases, last-minute sales, or risky financial moves can complicate divorce proceedings. Talk to a lawyer before making any major changes.
Get the Right People on Your Team
You don’t have to go through this alone—and you shouldn’t.
Why You Need an Experienced Divorce Lawyer
The right attorney can make all the difference. They’ll help you understand your rights, protect your property, and negotiate smartly. At Psonya Hackett Law, we’re here to advocate for what matters to you. We’ve been in the game for a long time, and it shows through our work.
How a Financial Advisor Can Help
A financial advisor can help you understand the long-term impact of asset division, taxes, and planning for your post-divorce future. Together with your attorney, you form a strong support system.
Final Thoughts: Protecting What’s Yours Starts Now
Divorce is never easy, but protecting your assets doesn’t have to be overwhelming. With good planning, clear records, and the right team on your side, you can walk away with the security you deserve.
At Psonya Hackett Law, we’re dedicated to helping clients protect their futures with personalized legal strategies and compassionate guidance. Let us help you move forward with confidence. Contact us today to schedule a consultation.