3/10/25

Marital vs. Non-Marital Property

Video Summary:

In Tennessee divorce cases, property is divided into separate property and marital property before determining how assets are split. Separate property includes assets owned before marriage, inheritances, and gifts—as long as they are kept separate. However, if separate property is commingled with marital assets—such as depositing pre-marital savings into a joint account—it can become marital property and subject to division. The key factor is how the property has been treated during the marriage, as courts assess whether assets have gradually merged into the marital estate.

Video Transcript:

In a divorce case, when dividing property, the first step is determining what qualifies as marital property and what remains separate property.

Separate property falls into three main categories:

  1. Assets owned before the marriage, as long as they were kept separate.

  2. Inheritances received during the marriage, if kept separate.

  3. Gifts received during the marriage, if kept separate.

Once separate property is identified, the remaining assets are considered marital property, which is subject to equitable division in divorce. However, if separate property is mixed with marital funds or used for joint purposes, it may lose its separate status.

There are two ways separate property can become marital property:

  • Commingling – For example, if a spouse had $50,000 in savings before marriage but later deposited it into a joint account, it becomes marital property because it has been mixed with shared assets.

  • Transmutation – If separate property is treated as a shared marital asset (such as using an inherited home as the family residence), courts may rule that it has been transformed into marital property over time.

Understanding these distinctions is critical in divorce, as only marital property is subject to division, while properly maintained separate property remains with its original owner.

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