Born right on the cusp of Millennial and Gen Z, I was raised with the impression that fifty percent (50%) of marriages end in divorce. Given that less than inspiring statistic, there is no doubt as to why the younger generations are postponing marriage or dropping the seemingly archaic notion all together. But at what cost? Outside of the tax implications, there are legal dilemmas that arise when you have been living with a significant other and have to divide assets without the protections of a divorce.
How does a divorce protect me?
Although many of us were raised with the idea that divorces are bad, they do allow certain protections for couples that need to separate. In Tennessee, ‘marital property’ is subject to equitable distribution at the time of divorce. In general, all property obtained during a marriage and all income from any increase in value of property obtained prior to the marriage constitutes marital property. However, if you are not married and have no other contract dictating who gets what in the event of a breakup, despite investing in a home for years, you may walk away with nothing.