Tennessee Code Title 26. Execution § 26-2-312

Property shall not be eligible, in whole or in part, for the homestead exemption provided by this part, if the property has been purchased with or maintained by fraudulently obtained funds or if ownership of the property has been maintained using fraudulently obtained funds.  A court shall be required to find by a preponderance of the evidence that the property was purchased with or maintained by funds obtained by defrauding another person or that ownership of the property was maintained by funds obtained by defrauding another person in order to disqualify the property from eligibility for the homestead exemption.