Amends TCA Title 36, Chapter 4 and Title 36, Chapter 5.

This bill clarifies that a court must allocate responsibility for payment of marital debt in actions for divorce or legal separation, adds factors for the court to consider in determining the allocation of responsibility for payment of marital debt, and clarifies alimony in solido may be awarded for attorney fees and expenses incurred in connection with the proceedings, all as discussed below.<br /> <br /> Present law authorizes a court, in all actions for divorce or legal separation, upon request of either party, and prior to any determination as to whether it is appropriate to order the support and maintenance of one party by the other, to equitably divide, distribute or assign the marital property between the parties without regard to marital fault in proportions as the court deems just. This bill revises this provision to instead require, in all actions for divorce or legal separation, prior to any determination as to whether it is appropriate to order the support and maintenance of one party by the other, the court to:<br /> <br /> (1) Equitably divide, distribute, or assign the marital property between the parties without regard to marital fault in proportions as the court deems just based on the factors set forth in present law and as amended by this bill; and<br /> <br /> (2) Allocate responsibility for paying the marital debt in proportions as the court deems just based on the factors set forth in this bill. The court may order the payment of all or a portion of the marital debt from the marital property prior to distribution of the marital property to the parties. <br /> <br /> This bill adds, in regard to actions for legal separation, that the court, in its discretion, may make a final allocation of all or part of the marital debt existing at the time of the decree of legal separation, or the court may reserve the allocation of marital debt until a later time. If the court makes a final allocation of marital debt at the time of the decree of legal separation, then any debt acquired after the date of legal separation will be separate debt. <br /> <br /> This bill adds that in in allocating responsibility for the payment of marital debt, the court must consider the following factors:<br /> <br /> (A) The purpose of the debt;<br /> <br /> (B) Which party incurred the debt;<br /> <br /> (C) Which party benefited from incurring the debt; and<br /> <br /> (D) Which party is best able to repay the debt.<br /> <br /> This bill also adds that in allocating responsibility for payment of unpaid attorney fees and expenses incurred in connection with the proceedings, the court must consider the factors above in (A)-(D) and the following factors:<br /> <br /> (A) The total amount of attorney fees and expenses incurred by each party in connection with the proceedings;<br /> <br /> (B) The total amount of attorney fees and expenses paid by each party in connection with the proceedings;<br /> <br /> (C) Whether the attorney fees and expenses incurred by each party are reasonable under the factors set forth in the Tennessee Rules of Professional Conduct; and<br /> <br /> (D) Whether the attorney fees and expenses were necessary.<br /> <br /> This bill specifies that the court may order the payment of all or a portion of the marital debt from the marital property prior to the allocation of responsibility for paying marital debt by either party, and may charge the party's share of the marital estate with all or a portion of the attorney fees and expenses paid by that party.<br /> <br /> Present law specifies factors that a court must consider in making equitable division of marital property. This bill adds as a factor to be considered, the total amount of attorney fees and expenses paid by each party in connection with the proceedings; whether the attorney fees and expenses were paid from marital property, separate property, or funds borrowed by a party; and the reasonableness, under the factors set forth in Rule 1.5 of the Tennessee Rules of Professional Conduct, and necessity of the attorney fees and expenses paid by each party.<br /> <br /> Present law provides that the purpose of alimony in solido is to provide financial support to a spouse. This bill adds that an additional purpose of alimony in solido is to enable the court to equitably divide and distribute marital property. Present law provides that alimony in solido may include attorney fees, where appropriate. This bill revises this provision to instead provide that alimony in solido may be awarded for attorney fees and expenses incurred in connection with the proceedings through the date of the final hearing and any proceedings brought pursuant to Rule 59 of the Tennessee Rules of Civil Procedure. This bill requires the court to consider, when determining whether attorney fees and expenses should be awarded as alimony in solido, the following:<br /> <br /> (A) The factors enumerated above in regard to the court allocating responsibility for payment of unpaid attorney fees and expenses incurred in connection with the proceedings;<br /> <br /> (B) The total amount of attorney fees and expenses incurred and the total amount of attorney fees and expenses paid by each party in connection with the proceedings;<br /> <br /> (C) Whether the attorney fees and expenses requested are reasonable under the factors set forth in Rule 1.5 of the Tennessee Rules of Professional Conduct; and<br /> <br /> (D) Whether the attorney fees and expenses were necessary.<br />