Opinion ID: 1058833
Heading Depth: 2
Heading Rank: 1

Heading: Classification as Marital Property

Text: In divorce cases, a trial court has the authority, upon the request of either party, to equitably divide the marital estate between the parties. Tenn.Code Ann. § 36-4-121(a)(1) (2001); see also Manis v. Manis, 49 S.W.3d 295, 306 (Tenn.Ct.App.2001). Trial courts have broad discretion in fashioning an equitable division of the marital estate. See Tenn.Code Ann. § 36-4-121(c) (2001); Manis, 49 S.W.3d at 306. Because of the court's broad discretion, its division of assets is not a mechanical process. Manis, 49 S.W.3d at 306. Tennessee is a dual property state. Smith v. Smith, 93 S.W.3d 871, 875 (Tenn.Ct.App.2002). Accordingly, the division of a marital estate must start with the classification of the parties' property. Brown v. Brown, 913 S.W.2d 163, 166 (Tenn.Ct.App.1994). Property is classified as either marital or separate property. Id. Only marital property is equitably divided as part of the marital estate. Tenn.Code Ann. § 36-4-121(a)(1) (2001); Brock v. Brock, 941 S.W.2d 896, 900 (Tenn.Ct.App.1996). Marital property is defined by statute to mean all real and personal property, both tangible and intangible, acquired by either or both spouses during the course of the marriage up to the date of the final divorce hearing and owned by either or both spouses as of the date of filing of a complaint for divorce.  Tenn.Code Ann. § 36-4-121(b)(1)(A) (2001) (emphasis added). Under the definition found at Tennessee Code Annotated section 36-4-121(b)(1)(A), the missing funds are not marital property that is subject to division. It is undisputed that the money was missing before Husband filed for divorce, and both parties testified that the money was not in their possession. Furthermore, the trial court concluded that anything could have happened to the money and stated that neither one of [the parties] knows what happened to it. Thus, it appears from the record that the property was not owned by either of the parties as of the date the complaint for divorce was filed. Accordingly, this property does not fit within the definition of marital property and should not have been divided as part of the marital estate. Id.; see also Brock, 941 S.W.2d at 900 (stating that property once owned by a spouse, either as separate property or marital property, but not owned by either spouse at the time of divorce, is not subject to classification and division or distribution when the divorce is pronounced). This conclusion, however, does not end our analysis as to the effect of Husband's handling of the funds.