Who Gets The House In A Tennessee Divorce?

During a divorce, there is typically a fair bit of conflict over the marital property, since the family house is one of the most valuable possessions. In addition to the totally monetary aspects of the residence, leaving or offering the family home can be extremely emotional, particularly when kids are involved. That’s why both parties wonder who gets the house in a Tennessee divorce?

This may upset many divorcing couples, but the truth is that there is no standard or precise answer which would fit every situation. Neither is there such thing as a ‘standard division’ of assets in Chattanooga such as the family house. It always depends on the particular situation of the marriage or civil partnership, and only an experienced Chattanooga family law attorney can help you with that.

Obviously, it is much better to come to an agreement (such as a division agreement) between you and your spouse about the splitting of assets, but when it’s impossible this is where court intervention is supposed to make a fair decision.

What Aspects Court Considers

When a court makes a decision on who get the house in a Tennessee divorce, it typically takes into consideration the following aspects:

  • Whether you have children under 18 in the marriage, their needs and interests, as well as whom they live with
  • The age of each spouse
  • The duration of the marriage
  • The value of properties, both before, throughout and also after the marital relationship– this could also consist of pension plans
  • The potential income of each spouse and their obligations during the marital relationship (such as child-rearing) in the future
  • What each spouse contributed to the marital relationship in terms of financial resources and assets (and also may contribute in the future towards the household’s welfare)
  • The standard of living throughout the marital relationship
  • Disability if any party has it
  • The unfavorable conduct of a spouse (although this is rare)
  • The general needs of each party.

Pay attention, that the first aspect in this list is children. You need to understand that the court will always seek to meet the interests of your children first, and only then the requirements of both parties. If the split of the house is inevitable, you still may have some choices on what to do. Here are some of them.

  1. Buy out your partner’s half of the house

This is a good option as long as you have money in hand or are able to receive a new mortgage. The amount of money you pay doesn’t have to be exactly half the worth of your residence. You can give up other marital property worth about as much as the selling spouse’s share. This could be a share of marital investments or retirement accounts.

2. Sell the house and divide the money

You could release yourself from your ex-partner and also your home if you sell as well as split the money. You will not owe federal tax on your post-divorce residence sale profit if you comply with the following requirements:

– Your profit doesn’t exceed the amount of $250,000 (declaring alone).
– The house was your main place of residence for two of the past five years.
– You have not utilized the home-sale profit exclusion in the past two years.

3. Keep the house until your children move out

When kids are involved, often one parent will stay in the house together with them the other parent moves out during the divorce.

When the kids are grown up and moved out, the ex-spouses sell the home and split the profit. If you’re the one that haven’t lived in the family house in two of the previous five years, you could owe taxes on the profit from the house sale.

4. Keep the house and take turns living there

It’s very rare when a family chooses to keep several houses, but this may happen especially in a high net divorce. The children stay in the original house and also the parents take turns living with them and also staying in their own residences after the divorce. If you split the expenses, you ‘d each deduct the expenses you paid, such as mortgage interest and also property taxes.

Bear in mind that you can only deduct mortgage interest for a house you possess and from a mortgage you’re obligated to pay.

Tennessee family law may be complicated and the correctness of the decision varies from case to case. To make it clear to you who will get the house in your divorce you should get in touch with a Chattanooga divorce attorney. 

McKoon, Williams, Atchley & Stulce, PLLC offers a wide range of services to make sure your children are protected and you get what you deserve.

 

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Legal Issues You Should Take Into Account When Getting Married

Are you considering getting married? Probably you just celebrated a marriage. Now begins is an amazing time of life when a couple gets to celebrate their love with their family as well as closest friends. However, this is also the period when you should take more responsibility and sometimes even say goodbye to your past. The legal side of your life doesn’t stay untouched either. Here are some legal issues you should take into account when getting married.

Taxes

When filing income taxes, make certain that your name and also social security number exactly match  what gets on file at the Social Security Administration (SSA). If you changed your surname after getting married, you must report your name modification to the SSA. When dealing with a name adjustment for marriage, you also have to provide your employer with a new Form W-4.

Your filing status is a determinant when it concerns your tax liability, filing requirements, and also qualification for different tax deductions and credits. Remember that when you as well as your partner marry, your newly combined income could become another tax challenge for you.  When it involves Federal taxes, whenever you get married during the year, you are considered to be”married” for that entire tax year.

Bank Accounts

Very often couples wonder whether to merge their accounts or leave them separate. There’s no 100% right answer, so think about your and your spouse’s interests when making this important decision. What expenses will be paid by what accounts? It’s important to review this issue with your partner prior to getting married to make sure everyone understands their obligations, especially financial ones.

Discuss Debts and Assets

Money is typically at the core of lots of marriage disputes. Prior to you get married, take the time to sit down and discuss how you will manage debt. Handling your partner’s debt can both strengthen or weaken your relationships. With a combined income paying debt off could be easier and quicker. Nonetheless, taking on brand-new financial obligation could hurt your credit score and increase anxiety.

When talking about assets, it is essential to understand Tennessee legislation and have a consultation with Chattanooga family attorney. In our state, asset division is equitable, yet equitable is not the same as equal. Your monetary contribution does not determine the possessions to which you are qualified. If you and also your spouse ever divorce, numerous subjective elements come into play when dividing assets. If you own any property, valuable items or business, don’t delay an accurate valuation.

Prenuptial Agreement

It is typical to think of prenuptial agreement when one or both parents bring business or individual assets into a marital relationship. Prenuptial agreements protect the property and also financial liberties of each partner in case of a divorce. Authorizing a prenuptial agreement is a very personal decision as well as is something that you need to be open about with your future spouse prior to you celebrate a marriage.

Wedding may be the happiest and most important day of your life, but don’t forget that that you will be entering into a legal agreement with your spouse. If you get overwhelmed or confused about exactly what to do regarding these marriage-related problems, or wish to know even more about the laws in Tennessee, get in touch with a Chattanooga family law attorney. Our professionals from McKoon, Williams, Atchley & Stanley, PLLC are more than happy to provide you with legal information on common law marriage. There are many different important legal issues that you and your spouse to be must find answers for.

 

Do I Need A Prenuptial Agreement?

When mentioning a prenuptial agreement, many individuals think only about the financial side of this contract. However, this type of agreement affects not only your money.

The reality is that prenuptial arrangements (which are called “premarital arrangements” in some jurisdictions) could likewise deal with other important matters, such as distributing the tasks between two spouses during the marriage, taking care of children from a previous relationship and keeping family heirlooms in the family. Sometimes these point can be much more important than just defining  assets division or spousal support after a divorce. Knowing the possibilities of a prenuptial agreement is an essential factor in your choice of whether or not to get one.

Right here are 4 main aspects why may need a prenuptial agreement.

 

1. You Want to Ensure Financial Safety For Both Parties

Obviously, a prenuptial agreement certainly brings a feeling of financial protection– specifically in cases where one spouse has much higher earnings compared to the other. On the one hand, the wealthy partner wants to protect his/her property as well as limit the amount and also period of spousal support in case of separation. On the other hand, the partner that does not have so many assets wants a guarantee of economic safety or financial support if their marriage finishes. The end outcome ought to be a sensible arrangement that provides security to both parties according to their specific requirements.

2. Your Future Spouse Has Substantial Financial Debt

One spouse bringing a lot of debt into the marital relationship is a rather common situation nowadays. Sometimes, the other spouse doesn’t even know about the financial debt of the other until they have actually got married. Don’t be afraid to raise this topic before the marriage – everyone has the right to feel confident about their future, especially when it hugely depends on another person. Of course, if the marriage ends, the other partner does not want to inherit their ex-spouse’s debt. A prenuptial agreement could limit the non-debtor spouse’s responsibility and also prevent creditors from seeking marital property to pay off the debt.

3. You Want To Protect Your Assets

A prenuptial agreement can be used to get around the laws regulating asset division and spousal support in some states (ask Chattanooga family attorneys if this is the case in Tennessee). The contract could define exactly how specific marital and non-marital possessions will be allocated when it comes to divorce. An excellent prenup can likewise sustain your estate plan. From professional experience of McKoon, Williams, Atchley & Stanley, PLLC family lawyers,  asset distribution is much less challenging with a legitimate prenuptial agreement, so protect yourself and your assets from messed-up situations later on by signing one before marriage.

4.You Want to Protect Your Business

It’s a natural desire for business owners and entrepreneurs to protect their business they’ve contributed so much into. Divorce can threaten it – both financially and because of interference from ex-spouse (and ex-spouse’s lawyer).  Without a prenup, the marital share of the business can be rather significant, and the non-owner spouse could end up with a considerable portion or even claim to it. This implies that business owner would be forced to buy out their ex-spouse’s share (which could have an extreme impact on the business’ capital) or put up with a potentially vindictive ex interfering in their business’ decision-making process. Developing and signing the detailed prenuptial agreement is vital for business owners; otherwise your business (especially if it’s a small or middle one) can occur under the threat of closing because of conflict or misunderstanding between you and your ex.

These are simply four of the several factors for creating a prenuptial agreement (or a post-nuptial agreement if you’re currently married). When the agreement is finished, you can feel confident that you have actually done your best to protect not only yourself, but also your spouse   in case of future divorce.

At McKoon, Williams, Atchley & Stanley, PLLC, you will find a Chattanooga family law attorney who will guide you through all of your legal options and answer any questions you may have about how various decisions could impact your future and the future of your family.  Don’t hesitate to contact us to find the solution to your issue.

Never Do This In High Net Worth Divorce in Tennessee

Separations are never ever easy or pleasant. There are so many variables that both parties need to take into consideration, such as sharing or splitting of properties, who obtains what, what will happen with the children, the vehicles, alimony, your house, visitation rights … this list is endless. Sometimes divorcing couples find out they may agree on some points, but not on others, and neither feels they ought to find a compromise or make concessions.

Time for an attorney? Absolutely. Even during a simple consultation you can find answers to important questions, so it’s definitely worth your time. and also it is well worth the moment. Compared to what one could lose (financially and or else) from making a mistake — because of not knowing the divorce legislation or a psychological breakdown in a time of tension, the price of excellent lawful advice pays for itself many times over.

This is particularly true for cases which include large amount of money, assets, residential property and business – like high net worth divorce with much higher potential for mistakes on both sides. It could be really emotional and stressful, which’s not the best mindset to make choices that lead to best long-term benefits. Consequently, it’s easy for either party to say or do things they may regret later, or to sign documents prepared by another party that are not in your best interests.

After tens years of professional experience and tons of solved divorce cases, McKoon, Williams, Atchley & Stanley attorneys are sharing tips for successful high net worth divorce and what you should never do to make the procedure run smoothly.

1. Agreeing to Anything Just to Get the Divorce

People may strive to get divorced as soon as possible for a number of reasons. The most common of them is, for example, a situation, when one person in a divorcing couple feels emotionally exhausted and like he/she just cannot stand the ex spouse anymore. The other reason is falling in love with another person and striving to get “free” as soon as possible. Whatever is the reason of your divorce, accepting terms such as alimony, or division of assets and liabilities in a hurry just to move away quickly could have destructive effects on you financially. Therefore, it is important that a complete analysis be taken prior to settling your divorce.

2. Failure to Appropriately Account for Possessions as well as Liabilities

When you get divorced you will have to fill out a financial affidavit and also provide specific records regarding your financial situation required by the law. It is essential to take this inventory seriously and make sure all details are relevant and accurate. It is time consuming and also tedious to put these things with each other, however failure to do so properly could leave you holding onto liabilities that should not be yours or your giving up assets or alimony you should not be obligated to give up.

 

3. Hiding Possessions

Some spouses think they are clever and also move their valuable assets to a 3rd party such as a company partner or youngster from a former marriage. Transfers like these can (and also more than likely will) be reserved as deceptive and you will lose the most vital thing you have in a court– your reputation. From that point forward you are in a losing position for everything else related to a proper or reasonable divorce settlement. It’s just not very smart and ineffective.

4. Failure to Consider Tax Consequences

When you divorce and you receive certain assets you could be taxed on distributions or you could agree on an alimony amount based on your budget without considering how much you will actually clear after taxes.  Tax considerations are a critical component of a high net worth divorce.

5. Working With A Wrong Lawyer

It is critically important that when you are going through what is probably the most emotionally devastating experience in your life, that you have a lawyer that is going to help you think clearly, strategically and guide you through the legal minefields so that once the dust has cleared, you will have a bright and financially secure future.Our divorce lawyers in Chattanooga, Tennessee provide exceptional service for those seeking soldiers relief or divorce mediation as an alternative to a standard divorce. Our divorce attorneys are more than happy to provide you with information on legal separation, amicable divorce, and common law marriage. There are many different important legal issues that you and your ex-spouse to be must find answers for. Even though it may seem impossible to come to an agreement on important aspects of the divorce, it is essential and our divorce lawyers are here to help you – just contact us today.

Main Misconceptions About Estate Planning

Many individuals delay estate planning due to the fact that they believe it is too expensive or complex for them as well as not very important for their family. Nonetheless, estate planning does not certainly need to be tough, and the typical person can and should have an estate plan that is conveniently understandable and doesn’t cost a lot. In this post, McKoon, Williams, Atchley & Stanley explain main misconceptions about estate planning for Chattanooga citizens.

Misconception #1: Estate planning is only concerning money.

Although finances could be the main reason for creating a will or trust, estate planning influences family members far beyond the handling of funds. Such plans simplify the life for your relatives during a time of loss and despair. A well-balanced strategy permits you to share your wishes as well as values after your passing away, assists your beneficiaries stay clear of a lengthy as well as costly probate procedure, and reassures relatives that they are doing just what the person would certainly have desired. In the first place, estate planning is about family, legacy, and also love.

Misconception #2: Estate planning is expensive as well as lengthy.

As a matter of fact, it’s just the opposite. Regardless of the initial cost of involving a lawyer to draft records, great estate planning saves both time and money in the long term. Without an estate strategy, your heirs will be entrusted to sustain probate, which is prolonged and also entails lawyer costs throughout the procedure.

Myth #3: Estate planning is only for wealthy people.

Possibly the most usual estate planning misconception is that the common household does not have an “estate.” Actually, an estate describes things you have, such as a residence, a car, or a saving account. Establishing an estate plan not just offers direction, yet offers advice for loved ones throughout a difficult time. An estate strategy makes sure that:

  • Your financial resources are managed if they become incapacitated
  • Decisions concerning the health care will be accomplished as planned
  • Children and also other heirs will be taken care of

Misconception #4: Estate planning is not urgent.

An estate plan is necessary for individuals of every age. A comprehensive estate strategy consists of files to attend to medical care needs in instance you end up being incapacitated, it permits financial responsibilities to be resolved if you are not able to do so in situation of disability– short- or long-term. Most important, these records reveal your wishes regarding who must take care of your youngsters if you are unable to. It might not really feel urgent, however an estate plan is a very useful present to your family.

Misconception #5: If I pass away without a will, the state will obtain my possessions.

There are several reasons to prepare a will, but worry over the state’s taking your household’s inheritance must not be among them. If somebody passes away without a legitimate will, then state law works– and also every state has its own inheritance guidelines. Typically, the spouse and kids of the deceased was initially to inherit. In some states, a surviving spouse and small children share the dead parent’s properties, which could cause a little one’s inheriting a significant portion of his/her moms and dad’s properties. That alone is a great reason to create a Will: you probably don’t want your eight-year-old to acquire one fourth of your checking account.

So, do properties ever before go to the state? Yes, but only when no relatives can be found, which is extremely rare. As long as a family member can be situated, regardless of exactly how distant, the state could not inherit your assets.

Misconception #6: I require just a standard will.

A standard will, such as one that you could complete using the internet resources, is definitely much better compared to no estate strategy. As well as if you never get around to creating even a basic will, the state has a default strategy currently in place for you. Unfortunately, the state’s strategy may be completely opposite to what you want or dream. Plus, all your probate assets will refer public record, and complying with the state’s default plan will likely be slow as well as expensive.

Misconception #7: Married couples don’t require an estate planning.

Of course, if you have been married for a great amount of time and saved reliable and trusting relationships between each other, you may have already discussed the question of distribution the property. Although it seems to you quite simple, you should not skip estate planning altogether. Under regular situations, any kind of collectively held assets will pass to the surviving spouse after the death of the initial partner. Nevertheless, exemptions could easily arise, such as the following:

  • The surviving partner remarries
  • One spouse would like particular residential property to be transferred to their kids, their parents, or a sibling, for example
  • Both spouses pass away simultaneously

As you see, an estate plan is not just a “plan B” – it is a necessity, especially if you have minor children. If you live in Tennessee and own real property (such as a house) or have other property, it is important that you work with an attorney who is knowledgeable about Tenneesee probate law and will advise you on which estate planning documents will work best for you.

McKoon, Williams, Atchley & Stanley, PLLC is a firm that specializes in estate planning, probate, tax controversies, and business transactions. We provide comprehensive estate planning, tax planning, business succession planning, charitable planning and wealth transfer services to you and your families.

Estate Planning by Nick Youngson CC BY-SA 3.0 ImageCreator

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