Iris Kay Snodgrass v. Robert H. Snodgrass

We granted permission to appeal in this divorce case to address whether a spouse’s 401(k) account is a “retirement or other fringe benefit right[] relating to employment” under Tennessee Code Annotated section 36-4-121(b)(1)(B) such that any increase in the account’s value that accrues during the marriage is marital property. We hold as follows: (1) the parties’ 401(k) accounts are “retirement or other fringe benefit rights relating to employment”; (2) the entire net amount by which the parties’ 401(k) accounts increased in value during the period of the parties’ marriage is marital property; (3) the premarital balances in the parties’ 401(k) accounts remain their separate property; (4) Husband did not transmute his entire 401(k) account to marital property when he made a single withdrawal for marital purposes; and (5) the trial court correctly divided the parties’ defined benefit pensions by reference to the monthly income each spouse was receiving rather than by reference to the present cash value of each spouse’s pension. The judgment of the Court of Appeals is affirmed in part and reversed in part. Tenn. R. App. P. 11; Judgment of the Court of Appeals Affirmed in Part, Reversed in Part