Property & Asset Division
Dividing up assets and debts is an essential part of almost any divorce case. Married individuals typically own or lease a marital residence, hold bank accounts jointly or individually, accumulate retirement benefits, and possess items of personal property such as vehicles and furniture. Some divorcing spouses may also hold valuable business interests. And, married spouses usually also acquire some form of debt -- whether it be in the form of mortgages, car loans, credit cards, or other personal obligations. One of the chief tasks of the divorce court is to sever these legal and financial connections between the parties so that they can move forward with their separate lives following the dissolution of a marriage.
How Will Everything Be Divided?
Section 30-2-51 of the Code of Alabama states that the marital estate is subject to equitable division and distribution. In general, property acquired during the marriage is part of the marital estate, however, there are certain exceptions to the rule that frequently appear in family law cases. For example, property acquired by inheritance or gift may or may not be deemed part of the marital estate based on various factors that an experienced attorney can emphasize through admitting certain evidence in court. Likewise, only a certain percentage of a spouse's retirement benefits is subject to division in the final Judgment of Divorce.
While it is impossible to narrowly define the concept of equitable distribution, we can be certain that it does not require the court to divide assets and debts equally between the parties. Rather, it is somewhat common for one spouse to receive a greater percentage of the marital estate, especially when the other party has been proven at fault in the marriage for committing adultery or abuse.
You Can Protect Your Family and Your Assets
As a practical matter, the division of assets and debts is not a simple formality and the process of gathering admissible evidence of financial records is critical to the legal process. During the discovery phase, it is usually best to have admissible proof of every asset and debt held by your spouse. If your spouse has an ownership interest in a business, that interest may be subject to division, and a business valuation may be necessary to show the actual assets, liabilities, and equity of that business. And as mentioned above, some property acquired prior to the marriage or by gift or inheritance may be shielded from division in the divorce. However, effectively proving an asset to be outside of the marital estate is not always a simple undertaking.
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Coming out of a divorce, clients need to protect their assets and limit exposure to liability for debts. To that end, we help clients gather as much information as possible prior to filing for divorce. Gathering documentation of all of the financial accounts can help narrow the scope of what will be needed for trial. Examining a credit report is a way to make sure all debts are addressed in the divorce case. Most importantly, we try to be sure that our clients have full disclosure of all of the assets and debts involved in the marriage. If the goal is to maximize the assets received in the divorce, we will always work with closely with our clients and conduct thorough and effective discovery.
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If you need to obtain a divorce while protecting your assets, call us today to discuss your options.
Davis Family Law, LLC | 1420 Government Street | Mobile, AL 36604
Phone: (251) 444-5332 info@davisfamlaw.com