Transmutation often occurs when a spouse purchases real property prior to the marriage and the parties then use the property as the marital residence and undertake significant improvements to the property during the marriage. See, e.g., Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *4 (Tenn. Ct. App. Aug. 11, 2020) (collecting cases); Carter, 2019 WL 424201, at *12 (concluding that home owned by wife prior to marriage became marital property through transmutation when "parties made the decision to improve the property together [and used] marital funds to make purchases for the renovations"); Hayes v. Hayes, No. W2010-02015-COA-R3-CV, 2012 WL 4936282, at *12 (Tenn. Ct. App. Oct. 18, 2012) (holding that home purchased by wife prior to marriage converted into marital property after "both parties borrowed money from the equity in the home" and "[h]usband consistently made significant improvements to the home"). We look to the following factors to determine whether a home owned by a spouse prior to marriage has become marital property through transmutation:

Whether separate property has transmuted into marital property is a question of fact. Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *2 (Tenn. Ct. App. Aug. 11, 2020) (citing Luplow v. Luplow, 450 S.W.3d 105, 114 (Tenn. Ct. App. 2014); Fox v. Fox, No. M2004-01616-COA-R3-CV, 2006 WL 1435407, at *3 (Tenn. Ct. App. Sept. 1, 2006)).

These factors, however, are not exclusive. Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *4 (Tenn. Ct. App. Aug. 11, 2020) (citing Fox, 2006 WL 2535407, at *5). The use of marital funds to pay off or improve the property have also been

"Tennessee courts have also found persuasive the use of marital funds for improving the property or paying off an encumbrance." Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *4 (Tenn. Ct. App. Aug. 11, 2020) (citing Owens v. Owens, 241 S.W.3d 478, 486 (Tenn. Ct. App. 2007)). Notably, "a spouse's earnings are marital property, regardless of whether they are deposited into a joint or separate bank account." Id.

In Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *3 (Tenn. Ct. App. Aug. 11, 2020), this Court found that the parties had "created confusion in the trial court by asserting claims and defenses based on the doctrine of transmutation and the statutory definition of marital property under Tenn. Code Ann. § 36 121(b)(1)(B)(i) without distinguishing them." Noting that the doctrine of transmutation and the statutory definition of marital property "are distinct in their purpose and requirements," this Court explained:

See Hill, 2023 WL 3675829, at *11 ("Rather, the focus of the transmutation analysis is 'how the parties treated the property.'" (quoting Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *5 (Tenn. Ct. App. Aug. 11, 2020))); see also Fox, 2006 WL 2535407, at *5 ("Even a marital residence that was . . . purchased using separate property should generally be classified as marital property

[11] The analysis in Hayes has been followed in more recent decisions from this Court. See Dover v. Dover, No. E2019-01891-COA-R3-CV, 2020 WL 7224368, at *6 (Tenn. Ct. App. Dec. 8, 2020); Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *4 (Tenn. Ct. App. Aug. 11, 2020); Carter v. Browne, No. W2018-00429-COA-R3-CV, 2019 WL 424201, at *11 (Tenn. Ct. App. Feb. 4, 2019). In Dover, the husband owned a home prior to the marriage, and the associated mortgage was paid off approximately three years into the marriage.

The analysis in Hayes has been followed in more recent decisions from this Court. See Dover v. Dover, No. E2019-01891-COA-R3-CV, 2020 WL 7224368, at *6 (Tenn. Ct. App. Dec. 8, 2020); Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *4 (Tenn. Ct. App. Aug. 11, 2020); Carter v. Browne, No. W2018-00429-COA-R3-CV, 2019 WL 424201, at *11 (Tenn. Ct. App. Feb. 4, 2019). In Dover, the husband owned a home prior to the marriage, and the associated mortgage was paid off approximately three years into the marriage.

These factors, however, are not exclusive. Lewis v. Lewis, No. W2019-00542-COA-R3-CV, 2020 WL 4668091, at *4 (Tenn. Ct. App. Aug. 11, 2020) (citing Fox, 2006 WL 2535407, at *5). The use of marital funds to pay off or improve the property have also been deemed relevant.