ÿWPC¸F …U:V %–nX¦ 0ÃþU:Á w@û 4; 0 O 0DV 0Jš 0Tä 0^8 0h– 0rþ 1mp 0dÝ BA 0|^Ú â 0@è 0†( D3® 0á 1uqU,æ 0dU,vU*¢U>ÌU. B)8DCa AM¤¦ñv—¹ ½Æiƒæì òÒ#¶Ä%¦z* -M!0än2rR5v~Ä8vÓB: 0@ 0Ф@ 0 .A 0´ÎA 0Ç‚B 0ÛIC 0ï$D AOEÆbE 0D(F D/lF B›F<þ6X9`("Courier NewTTX3|xa-«<þ6X9`("Courier NewTTXXxþ6X@ÉDQX@%ä2¼A`ArialTTTTXXXä2¼P±ŠQXP(›žZ$¡¡Ñ  ÑÔ€XðñXXXÔÑ` °ÑÑܰÑÑTRY3Ø' Letter3Ø' 3Ø' Letterÿ3Ø'TÑ,c½¬AZ‹"Arial Regular O-P-Q-R-DS-DT-EU-V-Ó€`-a-DÒ ppppp8(·(3ÿr$¤¤Ý ƒžZ!ÝÑ  ÑÔ€X §XXXÔÑ` °ÑÑܰÑÑTRY$3Ø' Letter3Ø'3Ø' Letterÿ3Ø'TÑÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô"tuvwxyz#,37=CIQYag­­1.a.i.(1)(a)(i)1)a)(<1$´´Ô2Ô6.Ú  Ú0Ú  ÚÔ3  Ôà0  à d2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  ÔHÙ("ÿÿ$££Ò  ÒÒ  Ò2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô$$$$'ÿÿdxd2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô&6= ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco< Œ 9p`(Arial< Œ 9p`(&Times New Roman< Œ 9p`(Courier% Line 7 dTTTT7Border 1dd€3UCþÿ << Gÿÿ œÝ ƒ!ÝÑ  ÑÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÔ€QÔÓ  Óò òÔ YYY ÔFILEDÔ€QXÔÌÌSeptember€16,€1996ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó ó lÝ ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔBoth€husband€and€wife€appealed€as€of€right€to€the€Court€of€Appeals€and€raised€a€total€ofÌà àseven€issues.€€Since€we€granted€permission€to€appeal€only€on€the€marital€property€issues,Ìà àthis€opinion€does€not€affect€the€other€portions€of€the€Court€of€Appealsðð€judgment.Ì ¯Ý ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔThe€house€had€belonged€to€Mr.€Cohenððs€deceased€grandmother.€€Mr.€Cohenððs€father€andÌà àhis€sister€had€an€interest€in€the€house,€with€his€sister€having€the€greater€share.€€The€fatherÌà àgave€his€share€equaling€$22,500€to€his€son.€€Cohen€paid€$2,500€to€his€aunt,€and€the€auntÌà àcarried€the€mortgage€for€the€remaining€$50,000.Ì ³Ý ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔThe€record€does€not€specify€when€Mr.€Cohen€began€his€employment€with€the€fireÌà àdepartment.Ì _Ý ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔThe€use€of€the€word€ð ðincludesðð€to€precede€the€list€in€subsection€(B)€does€not€indicateÌà àexclusion€of€unlisted€items,€but€rather€indicates€inclusion€of€listed€ones.€€When€a€broad€Ìà àstatutory€definition€is€followed€by€language€stating€that€the€definition€ð ðincludesðð€specificÌà àitems,€the€language€means€that€other€includable€items€have€not€been€specifically€Ìà àmentioned.€€Norman€J.€Singer,€òòStatutes€and€Statutory€Constructionóó,€ðð€47.07,€at€152Ìà à(Rev.€5th€ed.€1992).Ì ÜÝ ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔSeparate€property,€as€defined€by€the€legislature,€is€real€or€personal€property€owned€beforeÌà àthe€marriage,€property€acquired€in€exchange€for€property€owned€before€the€marriage,€Ìà àincome€from€and€appreciation€of€property€owned€before€the€marriage,€and€propertyÌà àacquired€by€gift,€bequest,€devise€or€descent.€€Tenn.€Code€Ann.€ðð€36„4„121(b)(2)(1991€Ìà àRepl.).€€Ì èÝ ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔThe€legislature€is€presumed€to€have€knowledge€of€the€subject€on€which€it€acts.€€òòNeff€v.Ìà àCherokee€Ins.€Co.óó,€704€S.W.2d€1,€4€(Tenn.€1986).Ì ¬Ý ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔIn€a€related€decision,€the€Court€considered€whether€payment€of€a€portion€of€militaryÌà àpension€benefits€was€alimony€in€futuro€or€a€division€of€marital€property.€€òòTowner€v.Ìà àTowneróó,€858€S.W.2d€888€(Tenn.€1993).€€Although€the€husbandððs€right€to€the€pensionÌà àwas€unvested€at€the€time€of€the€divorce€and€the€vesting€issue€was€not€raised,€this€CourtÌà àheld€that€the€retirement€benefits€were€marital€property,€not€alimony,€and€that€the€monthlyÌà àpayments€which€would€be€realized€upon€retirement€were,€in€effect,€a€distribution€ofÌà àmarital€property.€€òòIdóó.€at€891.€€While€we€did€not€construe€the€relevant€statute,€we€noted€inÌà àdicta€that€in€many€jurisdictions€unvested€as€well€as€vested€retirement€benefits€constitutedÌà àmarital€property€subject€to€division€in€divorce€cases.€€òòIdóó.Ì œÝ ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔFour€states€do€not€consider€unvested€pension€rights€divisible€in€divorce€proceedings.€€òòÌà àBurns€v.€Burnsóó,€847€S.W.2d€23€(Ark.€1993);€òòKirkman€v.€Kirkmanóó,€555€N.E.2d€1293Ï(Ind.Ìà à1990);€òòGeorge€v.€Georgeóó,€444€S.E.2d€449€(N.C.€App.€1994);€òòKing€v.€Kingóó,€605€N.E.2dÌ€à à970€(Ohio€App.€1992).Ì ÷Ý ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔFor€example,€if€retirement€benefits€had€accrued€during€ten€years€of€a€twelve€yearÌà àmarriage,€and€if€the€benefit€payments€would€be€payable€at€the€end€of€twenty€years,€theÌà àratio€would€be€120/240.€€Fifty€percent€of€the€potential€benefit€would€be€maritalÌà àproperty.€€The€trial€court€would€then€make€an€equitable€division€of€that€fifty€percentÌà àallotting€a€portion€to€the€nonemployee€spouse.Ì CÝ ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔMr.€Cohenððs€father€also€had€an€interest€in€the€property€which€the€parties€agreed€wasÌà àworth€$25,000.€€The€father€gave€this€interest€to€his€son€as€ð ðhis€inheritance.ðð€€Mr.€CohenÌà àpaid€his€aunt€$2,500€as€a€down€payment.Ì ÚÝ ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔIn€addition€to€the€unvested€retirement€benefits,€Mr.€Cohen€had€other€deferredÌà àcompensation€benefits€valued€at€$10,869.€€The€trial€court€ordered€that€Pamela€CohenÌà àbe€paid€$5,434€out€of€Jay€Cohenððs€share€at€the€time€the€house€was€sold.€€When€that€sumÌà àis€taken€into€account,€the€husband€would€receive€$50,565€and€the€wife€$46,434€from€theÌà àhouse€proceeds.Ì hÝ ƒ!ÝÑ#€d#ÑÔ€BÔÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€RÔThe€fact€that€no€title€or€other€legal€interest€has€been€conveyed€to€the€non„ownerÌà àspouse€is€irrelevant.€€For€the€purposes€of€property€division€in€a€divorce,€ð ð[i]n€the€finalÌà àanaylsis,€the€status€of€property€depends€not€on€the€state€of€its€record€title,€but€on€theÌà àconduct€of€the€parties.ðð€€òòMondelli€v.€Howardóó,€780€S.W.2d€769,€774€(Tenn.€App.€1989)Ìà à(citing€òòJones€v.€Jonesóó,€597€S.W.2d€886,€887€(Tenn.€1979)€&€òòLangford€v.€Langfordóó,Ìà à421€S.W.2d€632,€634€(Tenn.€1967)).ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA Op Monaco ÒÒ  BA Op Monaco Ò(gfi$µµà0  àÔ2(ÆÔ6.Ú  Ú0Ú  Ú.Ú  Ú0Ú  ÚÔ3  Ôà0` (#(#à(bÕä$¶¶à0  àà0` (#(#àÔ2ˆAÔÚ  ÚÚ  Ú.Ô3  Ôà0¸ ` (#` (#à(xâr$··à0  àà0` (#(#àà0¸ ` (#` (#àÔ2ˆAÔ(Ú  Ú0Ú  Ú)Ô3  Ôà0¸ (#¸ (#à(ŒU$¸¸à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àÔ2ˆAÔ(Ú  ÚaÚ  Ú)Ô3  Ôà0h(#(#à(Ÿ@Æ$¹¹à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àÔ2ˆAÔ(Ú  ÚÚ  Ú)Ô3  Ôà0Àh(#h(#à(³ýt$ººà0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àÔ2ˆAÔÚ  Ú0Ú  Ú)Ô3  Ôà0À(#À(#à(Çñû$»»à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àÔ2ˆAÔÚ  ÚaÚ  Ú)Ô3  Ôà0p(#(#à€3‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€BÔÓ&€PPX„d&ÓÑ#€PPXd#ÑÔ€ÔÑ  ÑÔ€QÔÑ ` ÑÑ Ü ÑÑ\R3Ø'\ÑÝ  ÝÑ  ÑÑ ° ÑÒ  ÒÒ ° ÒÓ  ÓÑ7€vöXXdÖdÈ7ÑÑ  ÑÑ\R AØ'\ÑÔ% €1 ÔÔ€RÔÔ€R¼ÔØ ØÓ&€SSX8d&Ó›à@ àIN€THE€SUPREME€COURT€OF€TENNESSEEÌÌ€à@ àAT€€à@ àNASHVILLEÌÌÌÌPAMELA€DIANNE€LOMAX€COHEN,à à)à àò òòòFOR€PUBLICATIONóóó óÌà àà àà àà àà àà àà à)à àà àÌà àPlaintiff,à àà àà àà àà à)à àœò òòòFiled:€September€16,Ï1996›€óóó óÌà àà àà àà àà àà àà à)Ìvs.à àà àà àà àà àà àà à)à àDavidson€CircuitÌà àà àà àà àà àà àà à)ÌJAY€STEVEN€COHEN,à àà àà àà à)à àHon.€Marietta€M.ÏShipleyÌà àà àà àà àà àà àà à)à àÌà àDefendant.à àà àà àà àà à)à àNo.€01S01„9510„CV„00185Ìà àà àà àà àà àà àÌà àà àà àà àÌà àà àà àà àà àà àà àÌòòFor€the€Plaintiffóó:à àà àà àà àà àòòFor€the€Defendantóó:ÌÌœVance›€Cramb,€œJr.à àà àà àà àà àFred€C.€Dance›ÌœNashville,€TN€€à àà àà àà àà àDANCE,€DANCE€&€LANEÌÙ€€ÙÙ€€ÙßL€VWU;+'h|ðòú` ç `€€Lßà àà àà àà àà àà àà àNashville,€TN€€ÌÌà àà àà àÌà àà àà àÌà àà àà àÌÌÌÌÌÌÌÌÌà@ àò òO€P€I€N€I€O€Nó óÌÌÌÌÌÌÌÌCOURT€OF€APPEALS€AFFIRMED€IN€PART,€ÌREVERSED€IN€PART;ÌTRIAL€COURT€AFFIRMED€IN€PART,ÌREVERSED€IN€PART;€ANDÌCASE€REMANDED€TO€TRIAL€COURT.à àà àà àà àWHITE,€J.ÌÌÌÓÓÓ  ÓÓ` °‚X˜XÓà àThis€divorce€case€raises€two€important€questions€involving€theÏclassification€of€marital€property€under€our€statutes.€€The€first€question€isÏwhether€an€interest€in€an€unvested€retirement€plan€is€marital€property.€€TheÏsecond€question€is€whether€increased€equity€in€separate€real€property€isÏmartial€property.€€The€trial€court€declined€to€consider€the€husbandððsÏinterest€in€an€unvested€retirement€plan€as€marital€property,€but€didÏconclude€that€the€increased€equity€in€the€husbandððs€separate€real€propertyÏwas€marital€property€subject€to€division.€€The€Court€of€Appeals€reversedÏon€both€counts.€€We€granted€permission€to€appeal€to€determine€whether€theÏlegislatureððs€definition€of€marital€property€set€forth€in€Tennessee€CodeÏAnnotated€Section€36„4„121€(1)(b)€includes€either€unvested€retirementÏplans€or€increased€equity€in€separate€real€property.€€We€hold€that€the€valueÏof€unvested€retirement€plans€and€increased€equity€in€real€separate€propertyÍaccruing€during€the€marriage€constitute€marital€property.€€Accordingly,€weÏaffirm€in€part€and€reverse€in€part€the€judgment€of€the€Court€of€Appeals.× ƒX ××  ×ÌÌà@ àò òI.ó óÌà àPrior€to€his€marriage€to€Pamela€Cohen€on€September€1,€1982,ÏJay€Cohen€purchased€a€house€for€$75,000€from€his€aunt.× ƒY ××  ×€€After€theÏmarriage,€as€a€gift€to€Pamela€Cohen,€her€family€made€improvements€to€theÏhouse€valued€at€$10,000.€€ÌÌà àDuring€the€partiesðð€marriage,€Mr.€Cohen€was€employed€byÏNashville€Metropolitan€Fire€Department€as€a€paramedic.× ƒZ ××  ×€€In€April,€1987,Ïthe€department€began€making€monthly€contributions€to€the€retirement€planÏon€Cohenððs€behalf.€€ÌÌà àIn€January,€1992,€Mrs.€Cohen€filed€for€divorce.€€Mr.€CohenÏcounterclaimed.€€The€amended€final€decree€of€divorce,€entered€on€AugustÏ11,€1993,€awarded€the€wife€an€absolute€divorce€and€sole€custody€of€theÏchild.€€It€also€divided€the€coupleððs€personalty€and€other€assets.€€As€to€theÏmarital€residence,€the€decree€ordered€that€the€residence€be€sold€with€eachÏparty€paying€half€of€the€monthly€payments€until€the€sale.€€The€trial€courtÏextended€credit€as€gifts€to€the€husband€for€$25,000€and€to€the€wife€forÏ$10,000€upon€the€sale€of€the€home.€€The€remaining€equity€was€to€beÏdivided€equally.€€€The€trial€court€declined€to€award€the€wife€any€interest€inÏthe€husbandððs€unvested€retirement€benefits.ÌÌà àThe€Court€of€Appeals€reversed€the€trial€court€on€both€issues.€ÏThe€appeals€court€held€that€the€wife€was€not€entitled€to€a€division€of€theÏequity€in€the€real€property€because€she€had€not€made€a€substantialÏcontribution€to€its€increase.€Conversely,€the€intermediate€court€held€that€theÏunvested€retirement€benefits€which€had€accrued€during€the€course€of€theÏmarriage€was€marital€property.€€The€case€was€remanded€the€case€to€theÏtrial€court€for€valuation€of€the€retirement€account€and€a€determination€ofÏthe€most€appropriate€method€of€division€and€distribution.€ÌÌà àWe€granted€permission€to€appeal€to€review€these€twoÏdeterminations.€€We€conclude€that€Tennessee€Code€Annotated€SectionÔ€QÔ€Ô€RÔ36„4„121€contemplates€that€both€the€unvested€retirement€benefits€and€theÏincreased€equity€in€the€real€property€be€considered€marital€property.ÌÌà@ àò òII.ó óÌà@ àò òUnvested€Retirement€Benefitsó óÌà àPrior€to€determining€whether€unvested€retirement€benefits€areÏmarital€property€under€our€statute,€we€will€review€the€concepts.€€AnÏemployee€has€a€ð ðvestedðð€retirement€right€when€the€employee€has€completedÏthe€requisite€term€of€employment€necessary€to€be€entitled€to€receiveÏretirement€benefits€at€some€future€time.€€òòIn€re€Marriage€of€Brownóó,€544ÏP.2d€561,€563€(Ca.€1976);€òòIn€re€Marriage€of€Grubbóó,€745€P.2d€661,€665Ï(Colo.€1987);€òòGrode€v.€Grodeóó,€543€N.W.2d€795,€801€(S.D.€1996);€G.ÏBlumberg,€òòMarital€Property€Treatment€of€Pensions,€Disability€Pay,ÏWorkersðð€Compensation,€and€Other€Wage€Substitutes:€An€Insurance,€orÏReplacement,€Analysisóó,€33€UCLA€L.€Rev.€1250,€1259€(1986).€€€€A€"vested"Ïright€matures€when€an€employee€reaches€retirement€age€and€elects€toÍretire.€€òòIn€re€Marriage€of€Grubbóó,€745€P.2d€at€665.€€Frequently,€vested,€butÏimmature€rights,€are€conditioned€upon€the€employee€reaching€retirementÏage.€€òòIn€re€Marriage€of€Brownóó,€544€P.2d€at€563.€€An€ð ðunvestedðð€retirementÏaccount€is€one€in€which€the€time€period€requirements€have€not€beenÏfulfilled.€€òòGrode€v.€Grodeóó,€543€N.W.2d€at€802.€€€€ÌÌà àOur€analysis€begins€with€Tennessee€Code€Annotated€SectionÏ36„4„121€which€defines€marital€and€separate€property:ÌÓÓà à(b)(1)(A)à8 à"Marital€Property"Ïmeans€all€real€andÏpersonal€property,€bothÏtangible€and€intangible,Ïacquired€by€either€orÏboth€spouses€during€theÏcourse€of€the€marriageÏup€to€the€date€of€the€finalÏdivorce€hearing€andÏowned€by€either€or€bothÏspouses€as€of€the€date€ofÏfiling€of€a€complaint€forÏdivorce,€except€in€theÏcase€of€fraudulentÏconveyance€inÏanticipation€of€filing,Ïand€including€anyÏproperty€to€which€aÏright€was€acquired€up€toÏthe€date€of€the€finalÏdivorce€hearing,€andÏvalued€as€of€a€date€asÍnear€as€reasonablyÏpossible€to€the€finalÏdivorce€hearing€date.ÌÌà àà8 à(B)à8 à"Marital€property"Ïincludes€income€from,Ïand€any€increase€in€valueÏduring€the€marriage,€ofÏproperty€determined€toÏbe€separate€property€inÏaccordance€withÏsubdivision€(b)(2)€if€eachÏparty€substantiallyÏcontributed€to€itsÏpreservation€andÏappreciation€and€theÏvalue€of€vested€pension,Ïretirement€or€otherÏfringe€benefit€rightsÏaccrued€during€theÏperiod€of€the€marriage.€€Ìà àà àà à.€.€.ÌÌà8 àà à(2)à8 à"Separate€propertyððÏmeans:Ìà àà8 àà à(A)à8 àAll€real€andÏpersonalÏpropertyÏowned€by€aÏspouseÏbeforeÏmarriage:Ìà àà8 àà à(B)à8 àPropertyÏacquired€inÏexchangeÏfor€propertyÏacquiredÍbefore€theÏmarriage;Ìà àà8 àà à(C)à8 àIncomeÏfrom€andÏappreciationÏof€propertyÏowned€by€aÏspouseÏbeforeÏmarriageÏexcept€whenÏcharacter…ized€asÏmaritalÏpropertyÏunderÏsubdivisionÏ(b)(1);€andÌà àà8 àà à(D)à8 àPropertyÏacquired€byÏa€spouse€atÏany€time€byÏgift,Ïbequest,Ïdevise€orÏdescent.ÌÌÌÓÓTenn.€Code€Ann.€ðð€36„4„121(b)(1)(A),€(B)€&€(2)(1991€Repl.).ÌÌà àFirst,€we€must€determine€whether€the€right€to€an€unvestedÏretirement€benefit€fits€within€the€statutory€definition€of€marital€property.€ÏIn€construing€statutes,€we€look€to€the€plain€language€and€give€effect€to€theÍordinary€meaning€of€the€words.€€Marital€property,€under€our€law,€includesÏð ðòòallóóðð€property€ð ðacquired€.€.€.€during€the€course€of€the€marriageðð€or€toÏwhich€ð ða€right€was€acquired€up€to€the€date€of€the€final€divorce€hearing.ðð€ÏTenn.€Code€Ann.€ðð€36„4„121(b)(1)(A)(1991€Repl.)(emphasis€added).€ÏProperty€is€generally€understood€to€include€anything€of€value.€€òòSeeóóÏòògenerallyóó€Blackððs€Law€Dictionary€1095€(5th€ed.€1979).€€Under€thatÏunambiguous€language,€clearly€the€right€to€unvested€retirement€benefits€isÏmarital€property.ÌÌà àOur€inquiry,€however,€does€not€end€there.€€We€must€considerÏstatutes€in€pari€materia,€not€in€a€vacuum.€Thus,€it€is€argued€that€furtherÏdescriptions€of€marital€property€in€the€statute€exclude€unvested€retirementÏbenefits.€€Specifically,€Mr.€Cohen€contends€that€the€plain€language€ofÏsubsection€(B)€which€specifically€identifies€vested€pension€benefits€asÏmarital€property€impliedly€excludes€unvested€retirement€benefits.€€Tenn.ÏCode€Ann.€ðð€36„4„121(B)(1991€Repl.)(ð ðand€the€value€of€vested€pension,Ïretirement€or€other€fringe€benefit€rights€.€.€.€.ðð)ÌÌà àUnlike€subsection€(A)€the€language€of€which€is€plain€andÏunambiguous,€subsection€(B)€is€not€without€ambiguity.€€It€is€not€at€all€clearÏwhether€the€adjective€ð ðvestedðð€in€the€phrase€ð ðvested€pension,€retirement€orÏother€fringe€benefit€rightsðð€modifies€ð ðretirementðð€or€ð ðother€fringe€benefitððÏor€only€ð ðpension.ðð€€Further,€if€the€term€ð ðvestedðð€is€interpreted€to€modifyÏeach€of€the€three,€the€question€remains€whether€the€inclusion€of€the€phraseÏoperates€to€exclude€unvested€retirement€benefits€included€under€the€broadÏdefinition€set€forth€in€subsection€(A).€€ÌÌà àWhen€the€language€of€a€statute€is€ambiguous,€this€Courtððs€roleÏis€to€determine€and€to€ð ðgive€effect€to€the€legislativeððs€intent€without€undulyÏrestricting€or€expanding€a€statuteððs€coverage€beyond€its€intended€scope.ððÏòòWilson€v.€Johnson€Countyóó,€879€S.W.2d€807,€809€Ô€QÔ(Ô€RÔTenn.€1994);€òòState€v.ÏSligeróó,€846€S.W.2d€262,€263€Ô€QÔ(Ô€RÔTenn.€1993).€€If€possible,€we€must€determineÏthe€legislative€intent€from€the€plain€language€of€the€statute,€ð ðread€in€theÏcontext€of€the€entire€statute,€without€any€forced€or€subtle€constructionÏwhich€would€extend€or€limit€its€meaning.ðð€€òòNational€Gas€Distributors,€Inc.Ïv.€Stateóó,€804€S.W.2d€66,€67€(Tenn.€1991).€€We€must€give€effect€to€everyÏword,€phrase,€clause,€and€sentence€of€an€act€to€achieve€the€legislatureððsÍintent.€€òòUnited€Canners,€Inc.€v.€Kingóó,€696€S.W.2d€525,€527€Ô€QÔ(Ô€RÔTenn.€1985).€ÏFurthermore,€in€order€to€ascertain€the€legislative€intent,€the€componentÏparts€of€a€statue€should€be€construed,€if€practicable,€so€that€the€parts€areÏconsistent€and€reasonable.€€òòMarsh€v.€Hendersonóó,€424€S.W.2d€193,€196ÏÔ€QÔ(Ô€RÔTenn.€1967).€€ÌÌà àA€court€must€presume€that€the€legislature€intended€that€everyÏword€used€in€a€statute€would€have€a€purpose€and€would€convey€meaning.ÏòòGeneral€Care€Corp.€v.€Olsenóó,€705€S.W.2d€642,€646€(Tenn.€1986).€€WeÏmust€give€effect€to€every€word,€phrase,€clause,€and€sentence€in€constructingÏa€statute.€€Further,€we€must€read€the€statute€in€its€entirety€and€construe€it€inÏlight€of€the€purposes€and€goals€the€statute€serves.€€ÌÌà àIn€applying€these€rules€of€statutory€construction,€we€concludeÏthat€the€legislature€intended€to€include€unvested€retirement€benefits€asÏmarital€property.€€First,€the€definition€of€marital€property€found€inÏsubsection€(A)€is€virtually€all€inclusive.€€That€broad€definition€clearlyÏincludes€unvested€retirement€benefits.€€Second,€subsection€(B),€whichÏserves€to€append€to€subsection€(Aððs)€definition€ð ðvested€pension,€retirement,Íor€other€fringe€benefit€rightsðð€and€certain€forms€of€separate€property€doesÏnot€exclude€unvested€retirement€benefits.× ƒ\ ××  ×€€Third,€we€note€that€unvestedÏretirement€benefits€are€not€included€in€the€definition€of€separate€property.× ƒ] ××  ×€ÏTenn.€Code€Ann.€ðð€36„4„121(2)(1991€Repl.).€€Thus,€when€we€read€theÏstatute,€in€its€entirety,€and€employ€long„standing€rules€of€statutoryÏconstruction,€we€conclude€that€unvested€retirement€benefits€are€maritalÏproperty€subject€to€division€under€Tennessee€Code€Annotated€Section€36„4„121.ÌÌà àOur€conclusion€based€on€these€rules€of€construction€isÏconsistent€with€the€legislative€intent€behind€these€statutes.€€Specifically,€theÏlegislative€definitions€of€marital€and€separate€property€were€ð ðto€codifyÏexisting€case€law,€to€define€marital€property€more€clearly,€and€to€recognizeÍa€homemakerððs€contributions.ðð€€òòKendrick€v.€Kendrickóó,€902€S.W.2d€918,Ï922€(Tenn.€App.€1994).ÌÌà àIn€1983,€when€the€applicable€statutes€were€drafted,€both€vestedÏand€unvested€retirement€benefits€were€considered€ð ðeconomicÏcircumstancesðð€€affecting€the€division€of€marital€property.€€òòHensley€v.ÏHensleyóó,€631€S.W.2d€131,€134€(Tenn.€App.),€òòpermóó.€òòtoóó€òòappealóó€òòdeniedóó,Ï(Tenn.€1981).€€Prior€to€the€adoption€of€the€statute,€our€intermediateÏappellate€court€(in€an€unreported€decision)€found€an€unvested€militaryÏpension€to€be€marital€property.€€Because€of€a€United€States€Supreme€CourtÏdecision,€òòMcCarty€v.€McCartyóó,€453€U.S.€210,€233€(1981),€whichÏdisallowed€consideration€of€òòanyóó€military€pensions€as€marital€property,€weÏreversed€the€Court€of€Appeals.€€òòWhitehead€v.€Whiteheadóó,€627€S.W.2d€944,Ï945€(Tenn.€1982).€€Congress€reacted€to€the€outcry€against€òòMcCartyóó€andÏpassed€the€Uniformed€Services€Former€Spousesðð€Protection€Act€(USFSPA),ÏPub.€L.€No.€97„252,€96€Stat.€718,€739€(codified€throughout€10€U.S.C.)Ïmaking€military€retirement€benefits€again€subject€to€division€as€maritalÏproperty.€€One€year€later€our€legislature,€presumptively€knowledgeable€ofÍthe€state€of€the€law,× ƒ^ ××  ×€passed€the€statute€at€issue€here.€€Since€the€declaredÏlegislative€intent€was€to€codify€existing€law,€we€must€assume€that€theÏlegislature€intended€to€include€vested€and€unvested€retirement€benefits€inÏthe€definition€of€marital€property.ÌÌà àMoreover,€including€vested€and€unvested€retirement€benefitsÏin€the€definition€of€marital€property€is€consistent€with€the€legislatureððsÏintent€to€recognize€a€homemakerððs€contribution€to€the€marriage.€€We€agreeÏwith€the€following€rationale€as€quoted€and€adopted€by€the€Rhode€IslandÏSupreme€Court:ÌÓÓà8 àà8 àà àð ðTo€the€extent€earned€duringÏthe€marriage,€the€benefits€representÏcompensation€for€marital€effort€andÏare€substitutes€for€current€earningsÏwhich€would€have€increased€theÏmarital€standard€of€living€or€wouldÏhave€been€converted€into€other€assetsÏdivisible€at€dissolution.€€SubjectingÏthe€benefits€to€division€is€just,Ïbecause€in€most€cases€the€retirementÏbenefits€constitute€the€most€valuableÏasset€the€couple€has€acquired€and€theyÏboth€have€relied€upon€their€pensionÏpayments€for€security€in€their€olderÏyears.ÌÌÓÓòòMoran€v.€Moranóó,€612€A.2d€27,€33€(R.I.€1992)(quoting€3€Rutkin,€òòFamilyÏLaw€and€Practiceóó,€ðð€37.07[1]€at€37„81€(1985)).€€ÌÌà àThough€not€necessary€to€our€conclusion,€we€note€that€courts€ofÏother€states€and€our€own€Court€of€Appeals€are€in€accord€with€ourÏconclusion€that€unvested€retirement€benefits€accruing€during€the€marriageÏconstitute€marital€property.€€òòSeeóó€B.€Blumberg,€ð ðIntangible€Assets:ÏRecognition€and€Valuation,ðð€2€Valuation€&€Distribution€of€MaritalÏProperty€ðð€23.02(3)(a)(1988).€€òòSeeóó€òòe.g.óó,€òòRoot€v.€Rootóó,€858€P.2d€67€(AlaskaÏ1993);€òòCooper€v.€Cooperóó,€808€P.2d€1234€(Ariz.€Ct.€App.€1990);€òòIn€reÏMarriage€of€Brownóó,€544€P.2d€561,€565€(Ca.€1976);€òòIn€re€Marriage€ofÏGalloóó,€752€P.2d€47,€51€(Colo.€1988);€òòIn€re€Marriage€of€Huntóó,€868€P.2dÏ1140€(Colo.€App.€1993);€òòKrafick€v.€Krafickóó,€663€A.2d€(Conn.Ï1995)(dicta);€òòDonavan€v.€Donavanóó,€494€A.2d€1260€(Del.€Super€Ct.€1985);ÏòòDozier€v.€Dozieróó,€606€So.2d€477€(Fla.€Dist.€Ct.€App.€1992);€òòHoller€v.ÏHolleróó,€354€S.E.2d€140€(Ga.€1987)(dicta);€òòStouffer€v.€Stoufferóó,€867€P.2dÏ226€(Haw.€App.€1994);€òòShill€v.€Shillóó,€599€P.2d€1004€(Idaho€1979);€òòIn€reÏMarriage€of€Korperóó,€457€N.W.2d€1333€(Ill.€App.€1985);€òòIn€re€Marriage€ofÏFuscheróó,€477€N.W.2d€864€(Iowa€1991);€òòIn€re€Marriage€of€Harrisonóó,€7690ÍP.2d€678€(Kan.€App.€1989);€òòPoe€v.€Poeóó,€711€S.W.2d€849€(Ky.€Ct.€App.Ï1986);€òòBreaux€v.€Breauxóó,€550€So.2d€1001€(La.€App.€1990);€òòThomasian€v.ÏThomasianóó,€556€A.2d€675€(Md.€App.€1989);€òòDeering€v.€Deeringóó,€437€A.2dÏ883,€889€(Md.€1981);€òòJanssen€v.€Janssenóó,€331€N.W.2d€752,€754„56€(Minn.Ï1983);€òòHemsley€v.€Hemsleyóó,€639€So.2d€989€(Miss.€1994);€òòHahn€v.€Hahnóó,Ï732€S.W.2d€545€(Mo.€App.€1987);€òòPolly€v.€Pollyóó,€487€N.W.2d€558€(Neb.Ï1992);€òòGemma€v.€Gemmaóó,€778€P.2d€429€(Nev.€1989);€òòHalliday€v.€Hallidayóó,Ï593€A.2d€233€(N.H.€1991);€òòWhitefield€v.€Whitefieldóó,€535€A.2d€986€(N.€J.ÏSuper.€Ct.€App.€Div.€1987);€òòWalentowski€v.€Walentowskióó,€535€A.2d€986Ï(N.€J.€Super.€Ct.€App.€Div.€1987);€òòDelorey€v.€Deloreyóó,€357€N.W.2d€488Ï(N.D.€1984);€òòCarpenter€v.€Carpenteróó,€657€P.2d€645€(Okla.€1983);ÏòòRichardson€v.€Richardsonóó,€769€P.2d€179€(Ore.€1989);€òòGordon€v.€Gordonóó,Ï675€A.2d€530€(Pa.€Super.€Ct.€1994);€òòMoran€v.€Moranóó,€612€A.2d€26€(R.I.Ï1992);€òòBall€v.€Ballóó,€445€S.E.2d€449€(S.C.€1994);€òòGrode€v.€Grodeóó,€543ÏN.W.2d€795€(S.D.€1996);€òòKendrick€v.€Kendrickóó,€902€S.W.2d€918€(Tenn.Ï1994);€òòDewey€v.€Deweyóó,€745€S.W.2d€514€(Tex.€Civ.€App.€1988);€òòGardnerÏv.€Gardneróó€748€P.2d€1076€(Utah€1988);€òòCook€v.€Cookóó,€446€S.E.2d€894Ï(Va.€1994);€òòButcher€v.€Butcheróó,€357€S.W.2d€226€(W.€Va.€1987);€òòParker€v.ÏParkeróó,€750€P.2d€1313€(Wyo.€1988).€€In€these€decisions,€retirementÍbenefits€have€been€described€as€part€of€the€consideration€earned€by€anÏemployee,€òòIn€re€Marriage€of€Brownóó,€544€P.2d€at€565,€and€as€a€form€ofÏdeferred€compensation€provided€by€the€employer€for€work€alreadyÏperformed.€€òòBatson€v.€Batsonóó,€769€S.W.2d€849,€857€(Tenn.€App.€1988),Ïòòpermóó.€òòtoóó€òòappealóó€òòdeniedóó,€(Tenn.€1989).€€Since€the€benefits€are€acquired€withÏthe€fruits€of€the€wage€earnerððs€labor,€were€it€not€deferred€it€could€benefitÏthe€parties€during€the€marriage.€€òòDeering€v.€Deeringóó,€437€A.2d€at€888.€€ÌÌà àWe€note€that€the€Minnesota€Supreme€Courtððs€analysis€of€theirÏstatute€is€most€instructive.€€Like€ours,€the€Minnesota€statute€does€notÏexclude€unvested€retirement€benefits€from€its€definition€of€maritalÏproperty.€€It€does,€however,€specifically€include€ð ðvested€pension€benefits€orÏrights.ðð€€Minn.€Stat.€ðð€518.54€subd.€5€(1982).€€Like€our€statute,€non„maritalÏor€separate€property,€though€defined,€does€not€include€unvested€retirementÏbenefits.€€òòIdóó.€òòContraóó€N.C.€Gen.€Stat.€ðð€50„20(b)(2)(ð ð[t]he€expectation€ofÏunvested€pension,€retirement,€or€other€deferred€compensation€rights€shallÏbe€considered€separate€propertyðð).€€The€Minnesota€court€recognized€that€toÏexclude€unvested€retirement€benefits€from€the€expansive€definition€ofÏmarital€property€in€light€of€its€absence€from€the€definition€of€separateÍproperty€would€be€to€create€a€separate€category€not€envisioned€by€theÏlegislature.€€òòJanssen€v.€Janssenóó,€331€N.W.2d€at€755.ÌÌà àAs€we€have€noted,€our€construction€of€Tennessee€CodeÏAnnotated€Section€36„4„121(b)(1)(A)€and€(B)€to€included€unvestedÏretirement€benefits€is€consistent€with€prior€decisions€from€the€Court€ofÏAppeals.€€A€panel€of€that€court€held€that€the€statutory€definition€of€maritalÏproperty€does€not€exclude€an€unvested€retirement€benefit€accruing€duringÏmarriage€from€equitable€division€in€divorce€cases.€€òòKendrick€v.€Kendrickóó,Ï892€S.W.2d€at€922.€€In€unreported€cases,€other€panels€have€followedÏòòKendrickóó€finding€unvested€retirement€benefits€subject€to€division€in€aÏdivorce€case€and€holding€that€vesting€has€no€bearing€on€the€classification€ofÏretirement€benefits.× ƒ_ ××  ×ÌÌà àRetirement€benefits,€vested€or€unvested,€are€important€assets.€ÏMany€married€couples€consider€these€benefits€as€substitutes€for€savings€orÏinvestments.€€òòKendrick€v.€Kendrickóó,€902€S.W.2d€at€920.€€As€the€date€ofÏvesting€grows€nearer,€the€benefit€may€be€the€most€valuable€asset€of€theÏmarriage,€òòIn€re€Marriage€of€Brownóó,€544€P.2d€at€566,€particularly€ifÏeconomic€circumstances€have€prevented€couples€from€saving€or€investing€aÏportion€of€their€income.€€òòDeering€v.€Deeringóó,€437€A.2d€at€887.€€A€spouseÏwho€is€primarily€a€homemaker€would€be€seriously€disadvantaged€by€theÏinability€to€claim€a€portion€of€the€retirement€benefits€that€accrued€duringÏthe€course€of€the€marriage.€€Even€when€both€spouses€are€publicly€employedÏand€have€accrued€retirement€benefits,€the€spouse€who€has€devoted€moreÏtime€to€homemaking€and€child„rearing€will€frequently€have€greatly€reducedÏbenefits.€€In€order€to€obtain€an€equitable€distribution€of€marital€property€asÏcontemplated€by€the€legislature,€the€trial€court€must€be€able€to€consider€theÏdistribution€of€all€retirement€benefits.€€ÌÌà àWe,€therefore,€conclude€that€marital€property€includesÏretirement€benefits,€both€vested€and€unvested€which€accrue€during€theÏmarriage.€€This€conclusion€is€consistent€with€the€language€of€the€statute,€theÍprinciples€of€statutory€construction,€and€purposes€for€its€enactment.€€AnÏinterest€in€a€retirement€benefit,€vested€or€unvested,€accruing€during€theÏmarriage,€is€marital€property€subject€to€division€under€Tennessee€CodeÏAnnotated€Section€36„4„121(a)(1).ÌÌà àWe€are€aware€that€the€states€that€do€not€recognize€unvestedÏretirement€benefits€as€marital€property€do€so€largely€because€of€theÏcontingent€and€speculative€nature€of€the€benefit.× ƒ` ××  ×€€We€find€that€the€betterÏreasoned€approach€recognizes€that€the€concept€of€ð ðvestingðð€is€irrelevant€toÏthe€classification€of€property€as€either€marital€or€separate.€€Even€ð ðvestedððÏretirements€may€be€contingent€upon€the€employeeððs€living€until€the€age€ofÏretirement.€€Contingencies€should€be€considered€on€the€issue€of€method€ofÏdistribution,€perhaps,€but€not€on€the€determination€of€classification.ÌÌà àFurther,€the€difficulty€in€determining€the€value€of€the€benefitsÏshould€not€affect€the€classification€of€the€property.€€Having€held€thatÏunvested€retirement€benefits€are€marital€property€under€our€statute,€weÍdiscuss€briefly€principles€which€may€assist€trial€judges€in€valuing€theseÏbenefits.€€Three€helpful€observations€made€by€the€Court€of€Appeals€inÏòòKendrickóó€bear€repeating:ÌÓÓà à1.à8 àOnly€the€portion€of€retirementÏbenefits€accrued€during€the€marriageÏare€marital€property€subject€toÏequitable€division.ÌÌà à2.à8 àRetirement€benefits€accrued€duringÏthe€marriage€are€marital€propertyÏsubject€to€equitable€division€evenÏthough€the€non„employee€spouse€didÏnot€contribute€to€the€increase€in€theirÏvalue.ÌÌà à3.à8 àThe€value€of€retirement€benefits€mustÏbe€determined€at€a€date€as€near€asÏpossible€to€the€date€of€the€divorce.ÌÌÌÌÓÓà àThe€difficulty€in€dividing€future€benefits€is€aided€by€the€use€ofÏelastic,€equitable€approaches.€€òòSeeòòóó€òòóóe.g.óó€24€Am.Jur.2d€Divorce€andÏSeparation€ðððð€948,€949€(1983).€€Most€courts€use€one€of€two€techniques.€€òòInÏre€Marriage€of€Brownóó,€544€P.2d€at€576;€òòGallo€v.€Galloóó,€752€P.2d€at€54;ÏòòJanssen€v.€Janssenóó,€331€N.W.2d€at€755.€€The€first€approach,€known€as€theÏpresent€cash€value€method,€requires€the€trial€court€to€place€a€present€valueÏon€the€retirement€benefit€as€of€the€date€of€the€final€decree.€òòKendrick€v.ÍKendrickóó,€902€S.W.2d€at€927.€€€To€determine€the€present€cash€value,€theÏanticipated€number€of€months€the€employee€spouse€will€collect€the€benefitsÏ(based€on€life€expectancy)€is€multiplied€by€the€current€retirement€benefitÏpayable€under€the€plan.€€òòGallo€v.€Galloóó,€752€P.2d€at€54.€€€This€gross€benefitÏfigure€is€then€discounted€to€present€value€allowing€for€various€factors€suchÏas€mortality,€interest,€inflation,€and€any€applicable€taxes.€€òòIdóó.€€òòSeeóó€òòalsoóó€€òòInÏre€Marriage€of€Grubbóó,€745€P.2d€at€666;€òòIn€re€Marriage€of€Huntóó,€397ÏN.E.2d€at€519;€òòDeering€v.€Deeringóó,.€437€A.2d€at€891.€€Once€the€presentÏcash€value€is€calculated,€the€court€may€award€the€retirement€benefits€to€theÏemployee„spouse€and€offset€that€award€by€distributing€to€the€other€spouseÏsome€portion€of€the€marital€estate€that€is€equivalent€to€the€spouseððs€share€ofÏthe€retirement€interest.€€òòGallo€v.€Galloóó,€752€P.2d€at€54.€€The€present€cashÏvalue€method€is€preferable€if€the€employee„spouseððs€retirement€benefits€canÏbe€accurately€valued,€if€retirement€is€likely€to€occur€in€the€near€future,€andÏif€the€marital€estate€includes€sufficient€assets€to€offset€the€award.€€òòKendrickÏv.€Kendrickóó,€902€S.W.2d€at€927;€òòGallo€v.€Galloóó,€752€P.2d€at€54.€€ÌÌà àIn€other€circumstances€in€which€the€vesting€or€maturation€isÏuncertain€or€in€which€the€retirement€benefit€is€the€partiesðð€greatest€or€onlyÍeconomic€asset,€courts€have€used€the€"deferred€distribution"€or€"retainedÏjurisdiction"€€method€to€distribute€unvested€retirement€benefits.€€ThisÏmethod€has€distinct€advantages€when€the€risk€of€forfeiture€is€great.€ÏòòKendrick€v.€Kendrickóó,€902€S.W.2d€at€927.€€Under€such€an€approach,€it€isÏunnecessary€to€determine€the€present€value€of€the€retirement€benefit.€ÏRather,€the€court€may€determine€the€formula€for€dividing€the€monthlyÏbenefit€at€the€time€of€the€decree,€but€delay€the€actual€distribution€until€theÏbenefits€become€payable.€€òòIn€re€Marriage€of€Brownóó,€544€P.2d€at€567;€ÏòòGallo€v.€Galloóó,€752€P.2d€at€55;€òòDeering€v.€Deeringóó,€437€A.2d€at€891;€ÏòòJanssen€v.€Janssenóó,€331€N.W.2d€at€753.€€The€marital€property€interest€isÏoften€expressed€as€a€fraction€or€a€percentage€of€the€employee€spouseððsÏmonthly€benefit.€€The€percentage€may€be€derived€by€dividing€the€numberÏof€months€of€the€marriage€during€which€the€benefits€accrued€by€the€totalÏnumber€of€months€during€which€the€retirement€benefits€accumulate€beforeÏbeing€paid.€€òòKendrick€v.€Kendrickóó,€902€S.W.2d€at€927€n.€17.× ƒb ××  ×€€ÌÌà àOne€advantage€to€the€deferred€distribution€method€is€that€itÏallows€an€equitable€division€without€requiring€present€payment€for€aÏbenefit€not€yet€realized€and€potentially€never€obtained.€€òòGallo€v.€Galloóó,€752ÏP.2d€at€55.€€Another€advantage€to€the€approach€is€that€it€equally€apportionsÏany€risk€of€forfeiture.€€While€a€disadvantage€may€be€that€the€approachÏrequires€a€trial€court€to€retain€jurisdiction€to€oversee€the€payment,€theÏentry€of€an€order€awarding€a€certain€percentage€of€the€benefits€at€the€timeÏof€payment€should€lessen€the€administrative€burden€of€the€court.€€CourtsÏroutinely€retain€jurisdiction€to€supervise€payments€of€alimony€and€childÏsupport€and€have,€in€the€past,€successfully€divided€vested€pension€rights€byÏawarding€each€spouse€a€share.€€An€administrative€burden€should€not€excuseÏan€inequitable€distribution€of€marital€property.ÌÌà àThe€choice€of€valuation€method€remains€within€the€soundÏdiscretion€of€the€trial€court€to€determine€after€consideration€of€€all€relevantÏfactors€and€circumstances.€€While€the€parties€are€entitled€to€an€equitableÏdivision€of€their€marital€property,€that€division€need€not€be€mathematicallyÏprecise.€òòKendrick€v.€Kendrickóó,€902€S.W.2d€at€929;€€òòThompson€v.ÏThompsonóó,€797€S.W.2d€599,€604€(Tenn.€App.€1990).€€It€must,€however,Íreflect€essential€fairness€in€light€of€the€facts€of€the€case.€€òòKendrick€v.ÏKendrickóó,€902€S.W.2d€at€929.ÌÌà àIn€this€case,€Mr.€Cohen€earned€approximately€six€years€ofÏretirement€benefits€during€the€marriage.€€Those€benefits€are€maritalÏproperty€subject€to€equitable€division€by€the€court.€€Rather€than€choose€theÏvaluation€method€on€this€record,€we€remand€to€allow€the€parties€to€presentÏadditional€evidence€pertinent€to€the€valuation€of€the€account.€€After€hearingÏthe€evidence,€the€trial€court€shall€determine€the€appropriate€valuationÏmethod€and€shall€make€appropriate€orders€distributing€the€portion€of€theÏpartiesðð€martial€property.€€We€note€that€this€holding€applies€to€this€case€andÏto€those€other€cases€in€which€the€property€rights€arising€out€of€theÏmarriage€have€not€yet€been€adjudicated€by€the€trial€court€or€in€which€theÏissue€has€been€raised€and€review€is€pending€in€the€appellate€courts.ÌÌà@ àò òIII.ó óÌà àThe€second€issue€for€our€consideration€is€whether€an€increaseÏin€equity€in€real€property€is€subject€to€division€as€marital€property€evenÏthough€the€real€property€is€the€separate€property€of€one€spouse.€€The€realÍproperty€in€this€case,€owned€by€Mr.€Cohenððs€aunt,€had€a€market€value€ofÏ$75,000.€€With€his€fatherððs€help,€Mr.€Cohen€paid€$25,000€down× ƒd ××  ×€and€hisÏaunt€carried€the€remaining€$50,000€as€a€twenty„year€mortgage.€€Thus,€atÏthe€time€of€the€purchase,€Mr.€Cohenððs€equity€was€$25,000.€€Between€theÏdate€of€the€marriage€and€the€date€of€the€divorce,€the€equity€in€the€propertyÏincreased€$17,000.€€ÌÌà àAt€the€time€of€the€divorce,€the€parties€stipulated€that€theÏmarket€value€of€the€real€property€was€$130,000.€€€The€trial€court€creditedÏthe€husband€with€€$25,000€(as€a€gift€or€inheritance)€and€the€wife€withÏ$10,000,€a€gift€from€her€family€used€to€improve€the€home.€€After€theÏ$33,000€debt€was€satisfied,€the€remaining€$62,000€was€divided€equally,Ïresulting€in€an€award€to€the€husband€of€$56,000€and€to€the€wife€ofÏ$41,000.× ƒf ××  ×ÌÌà àThe€Court€of€Appeals€reversed€holding€that€the€entire€value€ofÏthe€real€property€was€separate€property.€€First,€the€court€concluded€thatÏMr.€Cohen€had€paid€all€the€mortgage€payments,€insurance,€and€taxes,€onÏthe€residence.€€Secondly,€the€court€found€no€evidence€that€any€interest€inÏthe€property€had€been€conveyed€to€the€wife.€€Lastly,€the€Court€of€AppealsÏapparently€did€not€consider€the€increased€equity€in€the€real€property€asÏmarital€property€because€the€wife€had€not€made€a€substantial€contributionÏto€its€"preservation€and€appreciation."€€ÌÌà àWe€must€determine€whether€the€amount€by€which€a€mortgageÏis€reduced€on€separate€property€during€a€marriage,€i.e.,€the€increasedÏequity,€constitutes€marital€property€subject€to€division€upon€divorce.€ÏWhile€the€Court€of€Appeals€has€found€an€increase€in€equity€in€separateÏproperty€to€be€marital€property€when€the€payments€are€made€from€maritalÏfunds,€òòModelli€v.€Howardóó,€780€S.W.2d€769€(Tenn.€App.€1989),€we€haveÏnever€considered€this€question.ÌÌà àMarital€property€as€defined€by€the€legislature€includes€theÏð ðincome€from,€and€€any€increase€in€value€during€the€marriage,€of€€propertyÍdetermined€to€be€separate€property.€.€.€if€each€party€substantiallyÏcontributed€to€its€preservation€and€appreciation€.€.€.€.ðð€€Tenn.€Code€Ann.€ððÏ36„4„121€(b)€(1)(B)(1991€Repl.).€€Our€courts€have€consistently€interpretedÏthe€phrase€ð ðany€increase€in€valueðð€as€all€inclusive.€€òòEllis€v.€Ellisóó,€748ÏS.W.2d€424,€427€Ô€QÔ(Ô€RÔTenn.€1988)(disallowing€exception€based€on€inflation);ÏòòSherrill€v.€Sherrillóó,€€831€S.W.2d€293,€294€(Tenn.€App.),€òòpermóó.€òòtoóó€òòappealóóÏòòdeniedóó,€(Tenn.€1992);€òòMondelli€v.€Howardóó,€€780€S.W.2d€at€774.€€However,Ïthe€spouse€must€have€made€a€substantial€contribution€to€the€increase€beforeÏit€is€subject€to€division€as€marital€property.€€òòHarrison€v.€Harrisonóó,€912ÏS.W.2d€124,€127€(Tenn.€1995)(where€construction€of€interstate€highway€isÏsole€cause€of€increase€in€value,€the€increase€is€not€marital€property).€€ÌÌà àPut€simply,€equity€in€real€property€is€acquired€as€the€debt€isÏreduced.€€It€accrues€gradually.€€Its€potential€increases€with€each€payment.€ÏOwners€borrow€against€it,€use€its€proceeds€for€other€purchases€or€to€reduceÏother€debts.€€It€is€a€major€reason€for€purchasing€a€home.€€Under€our€stateÏlaw,€equity€in€separate€property€that€accrues€during€the€marriage€is€subjectÏto€division€as€marital€property€if€the€non„owner€spouse€makes€a€substantialÏcontribution€to€the€increase€in€the€value.€€òòIdóó.;€òòEllis€v.€Ellisóó,€748€S.W.2d€atÍ427;€Tenn.€Code€Ann.€ðð€36„4„121(b)(1)(B)(1991€Repl.).€€To€exclude€thatÏincrease€from€division€would€be€contrary€to€the€plain€meaning€of€theÏstatute.€€Consequently,€an€increase€in€the€equity€in€real€property,€whichÏaccrues€during€the€marriage,€is€marital€property€subject€to€division€uponÏdivorce,€notwithstanding€the€fact€that€the€real€property€was€separateÏproperty,€if€the€non„owner€spouse€substantially€contributes€to€the€increaseÏin€value.ÌÌà àThe€two€prerequisites€which€must€be€met€before€a€non„ownerÏspouse€may€claim€an€interest€in€the€increased€equity€on€separate€propertyÏare€clearly€set€out€in€the€statute.€€First,€the€increase€in€equity€(i.e.,€theÏreduction€in€debt)€must€have€occurred€during€the€marriage.€€Second,€theÏnon„owner€spouse€must€have€made€a€substantial€contribution€to€theÏincrease,€i.e.,€reduction.× ƒg ××  ×€€In€this€case,€both€conditions€are€satisfied.€€ÌÌà àDuring€the€marriage,€the€debt€owed€on€the€house€was€reducedÏby€$17,000.€€Secondly,€the€trial€court€concluded€that€the€wife€made€aÏsubstantial€contribution€to€the€increase€in€equity.€€That€determination€is€aÏquestion€of€fact.€€òòSeeóó€òòBrown€v.€Brownóó,€913€S.W.2d€163,€167€(Tenn.€App.Ï1994),€òòpermóó.€òòtoóó€òòappealóó€òòdeniedóó,€(Tenn.€1995)Ô€QÔ.€€Ô€RÔThe€record€supports€the€trialÏcourtððs€conclusion.€€€Mr.€Cohen€wrote€and€signed€the€checks€for€theÏmortgage,€€homeownerððs€insurance€premiums,€and€taxes.€€Those€checksÏwere€drawn€on€the€Cohensðð€joint€checking€account.€€The€coupleððs€onlyÏsources€of€income€were€the€salaries€from€their€employment.€€Salaries€ofÏeach€spouse€are€marital€property€under€the€statutory€definition.€€Tenn.ÏCode€Ann.€ðð€36„4„121(b)(1)€(1991€Repl.).€€Moreover,€a€spouseððs€directÏfinancial€contribution€to€family€expenses€and€indirect€contributions€asÏhomemaker€constitute€contributions€to€the€appreciation€or€preservation€ofÏthe€other€spouseððs€separate€property.€€òòBrown€v.€Brownóó,€913€S.W.2d€at€167.€ÏIt€is€of€little€consequence€who€signed€or€wrote€the€checks€when€the€accountÏon€which€the€checks€were€drawn€contained€both€partiesðð€earnings.€€ÌÌà àWe,€therefore,€conclude€that€the€increased€equity€in€Mr.ÏCohenððs€separate€property,€which€accrued€during€the€course€of€theÍmarriage€and€as€a€result€of€Mrs.€Cohenððs€substantial€contribution,€is€maritalÏproperty€subject€to€division.ÌÌÌÌà@ àò òConclusionó óÌà àWe€affirm€the€judgment€of€the€Court€of€Appeals€finding€Mr.ÏCohenððs€unvested€retirement€benefits€to€be€marital€property€subject€toÏdivision.€€We€reverse€the€Court€of€Appealsðð€finding€that€the€increasedÏequity€in€Mr.€Cohenððs€separate€real€property€is€not€marital€property.€€WeÏremand€the€case€to€the€trial€court€for€a€determination,€first,€of€the€value€ofÏthe€unvested€retirement€benefits,€and€then€for€an€equitable€distribution€ofÏthe€marital€assets€taking€into€consideration€both€the€retirement€benefits€andÏthe€increased€equity€in€Mr.€Cohenððs€separate€real€property.€€ÌÌÓÓà àà àà àà à___________________________________Ìà àà àà àà àPenny€J.€White,€JusticeÌÌÌÌCONCUR:ÌÌBirch,€C.J.ÌDrowota,€Anderson,€Reid,€J.J.€Ìà àÌÌà àÌà àÌÌà àÌÌ