The Tennessee Court of Appeals recently issued a ruling in the divorce case of Travis Lynn Rasmussen v. Sasha Nicole Rasmussen, affirming the classification of a business as a marital asset while vacating the trial court's division of that asset. This decision impacts both parties as they navigate the complexities of their divorce and the equitable distribution of their marital property.
The case originated in the General Sessions Court for McNairy County, where the trial court determined that the husband, Travis Rasmussen, owned a business called Choice Pool Care, LLC, which constituted a marital asset. The court awarded the wife, Sasha Rasmussen, a 20% share of the business. However, the trial court did not assign a specific value to the business, leading to the husband's appeal. The court's ruling is significant as it sets a precedent for how businesses are treated in divorce proceedings.
Travis and Sasha Rasmussen married in 2013 and have five children together. They lived in Arizona before moving to Tennessee in 2020. During their marriage, Travis operated Choice Pool Care, LLC, while Sasha was a stay-at-home mother. The couple's divorce proceedings began in 2022, with Travis filing a complaint and Sasha responding with a counter-complaint. The trial revealed disagreements over the nature of Travis's business, with Sasha asserting it was a marital asset and Travis claiming it was simply a sales job.
The trial court found that Travis's income derived from his work as a credit card processing sales representative was indeed business income and classified it as a marital asset. The court noted that Travis received a 1099 tax form for his income and that his business had generated significant revenue over the years. However, the court did not conduct a formal valuation of the business before determining the division of assets.
In its ruling, the Court of Appeals affirmed the trial court's classification of the business as a marital asset but vacated the decision regarding the equitable division of the asset. The appellate court emphasized that the trial court needed to value the business before dividing the marital estate. Judge Carma Dennis McGee, along with Judges J. Steven Stafford and W. Neal McBrayer, delivered the opinion of the court, stating, "The trial court's rulings regarding child support and alimony are likewise vacated and remanded for reconsideration in light of the further proceedings that are necessary as to the division of the marital estate."
The impact of this ruling is significant for both parties. By affirming the classification of Choice Pool Care, LLC as a marital asset, the court reinforces the notion that businesses operated during a marriage are subject to equitable distribution upon divorce. However, by remanding the case for valuation, the court ensures that both parties receive a fair division of assets based on the actual worth of the business. This ruling could influence future divorce cases in Tennessee, particularly those involving business ownership.
Looking ahead, the case may be subject to further proceedings as the trial court will need to conduct a valuation of the business before determining how to equitably divide the marital estate. Additionally, the court's ruling on child support and alimony will also need to be reconsidered based on the new findings regarding the business's value. It remains to be seen whether either party will seek further appeals or if they will comply with the court's directives moving forward.