Many Tennessee residents have substantial assets. When they divorce, several reasons may drive the decision to sell some of these assets, such as the primary residence.
These sales can have substantial implications, so it helps to understand why they might occur.
1. Equitable distribution
Tennessee has about three divorces per 1,000 people. In the state, assets acquired during the marriage are typically marital property. They are subject to equitable distribution upon divorce. Selling assets, including the primary residence, can facilitate the fair division of property between spouses.
2. Financial independence
Selling the primary residence or other assets can provide both parties with valuable financial resources. They may need these resources to establish independent living arrangements, especially if one spouse financially depended on the other during the marriage.
Selling assets during a high-asset divorce in Tennessee can also provide an opportunity for financial planning. By liquidating certain assets, individuals can reallocate resources to better align with their post-divorce financial goals and objectives.
3. Elimination of joint obligations
Divorcing couples often have joint financial obligations, such as mortgage payments and property taxes. Selling the primary residence allows both parties to sever these financial ties and move forward with their lives independently.
4. Reduced conflict
Disputes over ownership of assets, including the primary residence, can prolong the divorce process and increase conflict between spouses. Selling assets can minimize disagreements and streamline the division of property.
5. Fresh start
Selling the primary residence represents a fresh start and an opportunity to begin anew. It allows both parties to move on from the shared memories associated with the marital home and start a new chapter in their lives.
Selling assets such as the primary residence can serve various purposes. Approach the decision thoughtfully to ensure it is in your best interests.
