Tennessee Divorce With a House — Your Options (2026)

Real estate is typically the most significant marital asset in a Tennessee divorce. How you handle it in the MDA determines the outcome — clarity is critical.

Is Your Home Marital Property?

Usually yes: If purchased after the marriage with marital income, the home (or at least the marital portion of the equity) is marital property subject to equitable distribution.

Possible separate property:

  • Owned solely by one spouse before marriage AND never refinanced with marital funds
  • Purchased entirely with pre-marital separate property funds kept distinct

If the home was owned before marriage but paid down with marital income, it may be "hybrid" property — with the down payment as separate and the paydown as marital. This is a legal complexity worth consulting an attorney about.

Three MDA Options

Option 1 — One Spouse Keeps the Home

MDA must specify:

  • Who receives the home (clear identification by address and legal description)
  • Agreed value (average of two appraisals, or a negotiated market estimate)
  • Equity calculation: Agreed value minus mortgage balance = total equity; leaving spouse's share = agreed amount
  • How leaving spouse's equity is paid (cash, offsets against other assets)
  • Refinancing deadline — keeping spouse removes leaving spouse from the mortgage
  • What happens if refinancing fails (home must be listed and sold)
  • Who pays mortgage, taxes, insurance, and HOA during the transition period
  • Deed transfer instruction

Deed transfer: After refinancing, leaving spouse signs a Quitclaim Deed (or Warranty Deed). Record the deed at the county Register of Deeds where the property is located.

Option 2 — Sell and Divide Proceeds

MDA must specify:

  • Net proceeds split (50/50 or agreed percentage)
  • Listing deadline after Decree is entered
  • How listing price and agent are selected
  • Who occupies the home until sale; whether occupancy compensation applies
  • Who pays carrying costs pending sale
  • Price reduction timeline if home doesn't sell quickly
  • What happens if a spouse refuses to sign closing documents

Option 3 — Deferred Sale

One spouse stays for a defined period (usually to let a child finish school).

MDA must address:

  • Occupant and duration (specific date or triggering event)
  • Who pays all housing costs; consequences of default
  • What occupancy payment (if any) is owed to non-occupying spouse
  • Major repair decision-making and cost allocation
  • Sale terms and proceeds split when the period ends

Deed Recording in Tennessee

Tennessee counties use the county Register of Deeds — not the Circuit or Chancery Court — for real property recording.

Steps after Decree:

  1. Prepare a Quitclaim Deed (most common for dissolution transfers)
  2. Leaving spouse signs and notarizes
  3. Record at the county Register of Deeds
  4. Confirm recording fee (~$5–$20 per document)

Last reviewed: March 2026 | Tennessee deed recording: county Register of Deeds | MDA governs property division

Last reviewed: March 2026 · Verify current fees and forms with your local court before filing.