Tennessee is an equitable distribution state when it comes to the division of marital property and debts during a divorce. However, the precise meaning of the word “equitable” when it is applied to a family home may require substantial compromise. After a divorce, the former spouses should be completely financially disentangled in every way that they wish. If they purchased a home together during their marriage, then they can sell it, or one partner can compensate the other for their interest in it.
If there is a mortgage on the home, then the partner who is staying in the home should refinance in their name alone. It is not generally possible to remove the a person’s name from a mortgage without paying it in full and refinancing a new one. This can be a substantial obstacle during a divorce. The finances of both parties might well be at a low point, and the new mortgage will now depend on only one income.
Archive note. This post was originally published on the Nashville Family Law Blog at kwellerlaw.com. Only the opening of the article survives in the Internet Archive, so the text above is the portion that could be recovered verbatim. The remainder of the original article is not available. To discuss how this topic applies to your own situation, call (615) 256-2602.