Key Factors Courts Consider in Divorce Settlements
Going through a divorce raises numerous questions and uncertainties. For many, the primary concerns center on the future. How will property be divided? Who will be responsible for the debts? What will happen with financial support?
At Kesling Law Firm, we understand these concerns because we’ve helped many people through this challenging process for over a decade. When you’re facing a divorce, having an experienced attorney on your side is not a luxury—it’s a necessity to protect your rights and your future.
Located in Orange Beach, Alabama, our firm serves clients throughout Baldwin County and the Gulf Coast, including Orange Beach, Gulf Shores, Foley, Elberta, Summerdale, Robertsdale, and beyond. Our goal is to provide clear guidance so you can make informed decisions at every step.
Understanding the Divorce Settlement Process
A divorce settlement is a legal agreement that specifies how a couple will divide their assets and debts and addresses issues such as alimony and child custody. While some couples can reach an agreement on their own through mediation or direct discussion, many require a court's intervention to finalize these matters.
When a judge makes these decisions, they aren't just picking numbers out of a hat. They follow specific legal principles and consider a wide range of factors to arrive at a resolution they believe is fair and equitable. Let’s look at the primary elements that courts evaluate.
The Division of Marital Property
One of the central components of any divorce settlement is the division of marital property. This includes all assets and debts acquired by either spouse during the marriage. It’s important to distinguish this from separate property.
Marital property: This typically includes real estate purchased during the marriage, bank accounts, retirement funds, investments, vehicles, and businesses. It doesn’t matter whose name is on the title or account; if it was acquired while you were married, it's generally considered marital property.
Separate property: This refers to assets owned by one spouse before marriage or assets received during marriage as a gift or inheritance. However, separate property can sometimes become marital property if it gets mixed with marital assets (a concept known as "commingling"). For example, if you deposit inheritance money into a joint bank account, it may lose its status as separate property.
Courts will first identify and value all marital assets and debts. Then, they will proceed with dividing them.
Factors Influencing Property Division
Alabama is an "equitable distribution" state. This doesn't mean property is split 50/50. Instead, the court divides property as it deems fair, which may or may not be an equal split. To determine what is equitable, a judge will consider several factors:
Length of the marriage: A short-term marriage might result in a division that aims to return both parties to their pre-marital financial status. In a long-term marriage, a more equal division is standard, as both spouses are seen as having contributed significantly to the marital estate.
Each spouse's contribution: The court looks at both financial and non-financial contributions. This includes the income each spouse earned, but it also values the work of a stay-at-home parent who managed the household and raised children, recognizing this as a valid contribution to the family’s well-being and the other spouse's ability to earn.
Earning capacity: The court will assess the current and future earning potential of each spouse. A spouse who has been out of the workforce for a long time to raise a family may have a lower earning capacity and could receive a larger share of the assets or alimony to compensate for this.
Age and health: The age and physical and emotional health of each spouse are taken into account. A spouse with significant health issues or who is nearing retirement age may have a greater need for financial support.
Marital misconduct: While Alabama allows for no-fault divorce, fault can play a role in the settlement. Suppose one spouse's misconduct (like adultery, abuse, or gambling) led to the breakdown of the marriage or wasted marital assets. In that case, the judge might award a larger share of the property to the innocent spouse.
The Role of Alimony
Alimony, also known as spousal support, is another key element in many divorce settlements. It is not awarded in every case. Its purpose is to provide financial support to a lower-earning or non-earning spouse for a specified period after the divorce. The goal is to limit any unfair economic effects of a divorce by providing a continuing income to a non-wage-earning or lower-wage-earning spouse.
Factors a court considers for alimony include:
The recipient spouse's financial need and the paying spouse's ability to pay.
The standard of living established during the marriage.
The length of the marriage.
Each spouse's age, health, and earning capacity.
The conduct of the parties, including any fault that contributed to the divorce.
There are different types of alimony, such as temporary support during the divorce proceedings, rehabilitative alimony to help a spouse get education or training to re-enter the workforce, or periodic alimony for long-term support.
Alabama Law and Divorce Settlements
In Alabama, the law gives judges considerable discretion in dividing property and awarding alimony. The state follows the principle of "equitable distribution," as mentioned earlier. The Alabama Code § 30-2-51 and § 30-2-52 empower the court to divide assets acquired during the marriage in a manner that is fair, not necessarily equal.
Regarding alimony, Alabama law allows for various forms of support. A significant change occurred in 2017, creating a presumption against awarding periodic alimony for marriages lasting less than 10 years. For marriages between 10 and 20 years, the duration of alimony is generally not supposed to exceed the length of the marriage. Retirement can also serve as a basis for terminating an alimony obligation, as it was not always the case previously. Understanding these state-specific statutes is vital when preparing for a divorce settlement.
Trusted Family Law Services
For over a decade, Kesling Law Firm has represented clients across Baldwin County and the Alabama Gulf Coast. Our team works hard to help you understand and protect your rights, and it is important to us that you feel comfortable and informed throughout every step of the legal process. We are known for our dedication to our clients and our commitment to providing exceptional legal counsel. We will leverage our in-depth understanding of the law to guide you, ensure your voice is heard, and help you achieve the best possible outcome.
We serve Alabama Gulf Coast communities, including Baldwin County, including Orange Beach, Gulf Shores, Josephine, Foley, Elberta, Summerdale, Robertsdale, and beyond. Call today to schedule a consultation for your family law matters.