When two individuals agree to marry in Alabama, they also agree to divide up their assets and debts in the event their marriage doesn’t work out. Each state has its own laws that govern how assets and debts are divided in a divorce, and in the State of Alabama, the court follows equitable distribution laws. Essentially, what this means is that if a couple decides to divorce and doesn’t have a prenup or hasn’t made their own arrangement for how their assets and debts will be divided, the court shall divide both equitably.

 

What is equitable division?

 

When the court divides up assets and debts equitably in a divorce case, it doesn’t necessarily mean it is going to be divided equally. Instead, equitable division means that assets and debt will be divided fairly. Any property or debt that is acquired after a couple marries is considered marital property and would be subject to division. Some examples of what an Alabama court shall divide up in a divorce include:

  • The marital estate
  • Retirement plans
  • Retirement accounts
  • Pensions
  • Profit-sharing plans
  • Savings plans
  • Mortgage debt
  • Auto loan debt
  • Medical debt
  • Credit card debt

 

Generally, any debt that accrues during the course of a marriage, even before a divorce is finalized, will be subject to division. However, there are factors that can influence the court’s decision. For example, if one spouse were to go on a spending spree using jointly owned credit cards as a way to retaliate against their husband or wife for filing for divorce, the court may not hold the other party accountable for the debt.

If one party can prove the other made frivolous purchases as a way to get back at them, the court may use this information when deciding how it wants to divide up the couples’ debt. Now, because one party likely doesn’t want to walk away from their divorce case with loads of debt that they will be required to pay, it is always a good idea that they retain an Alabama divorce attorney who will protect their interests. If an individual would like to get connected with an AL divorce attorney who is ready and available to assist with their case, they can contact Hill, Gossett, Kemp & Hufford, P.C. at one of their office locations listed down below.

 

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

 

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

 

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

 

Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500

 

Springville Office

6441 U.S. Highway 11

Springville, Alabama 35146

Phone: (205) 467-2225

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