Kristin Cavallari said on the Aspire with Emma Grede podcast (reported July 8, 2026) that she received no money from ex-husband Jay Cutler in their 2022 Tennessee divorce and had to buy him out of her Uncommon James business in cash plus properties. Cutler disputes this. Under Tennessee's equitable distribution framework at Tenn. Code § 36-4-121, a business grown during marriage is marital property subject to division — even when only one spouse runs it.
Key Facts
| Detail | Summary |
|---|---|
| What happened | Cavallari claims she received $0 from Cutler and paid a cash-plus-property buyout of his share of Uncommon James |
| When | Divorce finalized 2022; podcast comments reported July 8, 2026 |
| Where | Tennessee (Williamson County jurisdiction) |
| Who's affected | Cavallari, Cutler, and their three children |
| Key statute | Tenn. Code § 36-4-121 (equitable distribution) |
| Impact | Highlights how marital businesses are valued and bought out in equitable-distribution states |
Why this matters legally
A business founded and grown during a marriage is almost always marital property in Tennessee, regardless of which spouse's name is on the paperwork. Under Tenn. Code § 36-4-121(b), marital property includes all assets acquired by either spouse during the marriage, and any increase in value of a separately-owned asset if the other spouse contributed to that appreciation. Cavallari launched Uncommon James in 2017, during her marriage to Cutler, which means the entire company — and its appreciation — falls squarely within the marital estate. That is why a spouse who built and operates a thriving business can still owe the other spouse roughly half its value.
Tennessee is an equitable-distribution state, not a community-property state. Equitable does not mean equal; it means fair. Courts weigh factors listed in Tenn. Code § 36-4-121(c), including each spouse's contribution to acquiring marital assets, the duration of the marriage, and each party's economic circumstances. Understanding equitable distribution is essential to seeing why one spouse can walk away owing the other a cash buyout even without receiving cash in return. When the marital estate is dominated by a single illiquid asset like a company, one spouse frequently keeps the asset and offsets the other's share with cash, property, or a note.
How Tennessee law handles this
Tennessee courts value a marital business as of a date near the divorce and then divide that value equitably between the spouses. There is no automatic 50/50 split, but a long marriage with joint contributions often produces a near-equal division. Business valuation typically requires a forensic accountant or valuation expert who examines revenue, profit margins, tangible assets, goodwill, and comparable sales. For a brand like Uncommon James, brand goodwill and recurring revenue can drive a substantial valuation figure.
Once the court fixes a value, it must decide who keeps the business. Courts strongly favor awarding a closely-held business to the spouse who runs it, because forcing co-ownership of a company between divorcing spouses rarely works. The operating spouse then "buys out" the other's marital share. Under Tennessee's flexible authority in Tenn. Code § 36-4-121(e), a court can order that buyout paid in cash, satisfied by transferring other marital property such as real estate, or structured as installment payments over time. This is precisely the mechanism Cavallari described: she kept the company and offset Cutler's share with cash and properties.
Cutler's public pushback — that no Tennessee judge would let him keep everything while giving her nothing — reflects a real legal principle. A Tennessee court dividing a marital estate looks at the whole picture, not one asset in isolation. If Cavallari retained the business, the court would typically award Cutler offsetting assets so both parties leave with an equitable share of the total marital estate. The framing of "who paid whom" depends heavily on how the entire asset pool was allocated, which is why two spouses can describe the same settlement in opposite terms.
Custody in Tennessee is governed separately under Tenn. Code § 36-6-106, which directs courts to allocate parenting time based on the best interests of the child. Cavallari's claim of primary custody, if accurate, would reflect a parenting plan designating her the primary residential parent. Business division and parenting arrangements are decided under different statutes and different standards. Readers navigating both issues can review child custody arrangements to understand how Tennessee separates financial and parenting questions.
Practical takeaways
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Treat any business started during your marriage as marital property. Even if your name alone is on the LLC, appreciation during the marriage is generally divisible under Tenn. Code § 36-4-121. Assume it is on the table.
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Get a professional valuation early. A forensic accountant or certified business valuator establishes a defensible number for revenue, assets, and goodwill. Vague estimates lead to disputes and appeals; documented valuations lead to settlements.
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Plan for liquidity. If you intend to keep your company, you will likely need cash or offsetting assets to buy out your spouse's share. Explore installment structures under Tenn. Code § 36-4-121(e) if a lump sum is not feasible.
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Distinguish "I got $0" from "the division was inequitable." Receiving no cash does not mean you were shortchanged if you kept a valuable asset. Look at the full allocation of the marital estate, not one line item.
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Consider a prenuptial or postnuptial agreement before building a business. A clear agreement defining business ownership can prevent exactly this kind of contested buyout. Map your own situation with a personalized divorce roadmap.
If you own a business and are contemplating divorce in Tennessee, the valuation and buyout stage is where cases are won or lost. A qualified family law attorney and a valuation expert can protect both the company you built and your financial future. You can find a divorce attorney in your county to discuss how equitable distribution would apply to your specific assets.
This article discusses recent news and provides general legal commentary. It does not constitute legal advice. Every case is unique. Consult a qualified family law attorney for advice specific to your situation.