TN Farm Property Remained Husband’s Separate Property Despite Increase

Tennessee law case summary on classifying property value increase as marital or separate in divorce and family law from the Court of Appeals.

Lillie Franchie Huddleston v. Robert Lee Huddleston – Tennessee divorce property classification

When the husband and wife married in 1969, each brought real property to the marriage.  The husband owned a farm in Putnam County, which had been acquired in pieces over the years.  The final piece of the farm had been deeded to him by his father in 1972.  The farm was divided by a road.  During the marriage, the value of the farm property increased from $42,500-$74,000 in 1969 to $300,000 – $331,500 in 2010.  At the time of the marriage, the wife owned a house in Cookeville.  The parties resided at the Putnam County farm until their separation in 2010.  During the marriage, the parties also acquired a lot adjoining the house in Cookeville.  The husband quitclaimed his interest in the house and lot to the wife.  She subsequently conveyed this to her sons.  When the sons sold the property, the proceeds were used to purchase a life insurance policy covering the wife.

The husband was granted a divorce in 2010.  The trial court determined that the wife had contributed to the appreciation in value of the farm during the marriage, and determined that this appreciation was marital property.  It divided the farm and awarded the portion on the east side of the road to the wife, and the portion on the west side of the road to the husband.  The trial court also determined that the insurance policy was the wife’s separate property.

The husband appealed to the Tennessee Court of Appeals, and argued that the trial court erred in classifying the farm as marital property and the life insurance as separate property.  With respect to the farm property, he argued that the increase in value was the result of inflation and general increases in property value in the county.  The trial court had noted that the wife had maintained the marital home, and had also helped with farm chores.  The Court of Appeals, however, held that this was insufficient to establish that she had contributed to the increase in the value of the property.  It therefore reversed the trial court’s holding that the increase in value of the farm was marital property.

With respect to the insurance policy, the Court of Appeals found that the evidence supported the trial court’s ruling.  Since the policy had been purchased with proceeds of the house, which was the wife’s separate property, then the policy remained the wife’s separate property.  Therefore, the Court of Appeals affirmed this portion of the trial court’s ruling.

For these reasons, the Court of Appeals remanded the case, and instructed the trial court to divide only the portion of the farm that was acquired after the marriage.

No. M2012-00851-COA-R3-CV (Tenn. Ct. App. July 30, 2013).

See original opinion for exact language.  Legal citations omitted.

The Miles Mason Family Law Group handles Tennessee divorce, child support, alimony, child custody, and parent relocation.  Download our free e-Book, Your First Steps: 7 Steps Planning Your Tennessee Divorce.  A Memphis divorce lawyer from the Miles Mason Family Law Group can help.  To schedule your confidential consultation, call us today at (901) 683-1850.