Alabama Courts have long held that divorcing spouses have a legal right to the “equitable division” of marital assets from their marriage. There is no specific formula or statute definition of what is “equitable”. If needed, courts will determine equity on a case-by-case basis. However, the parties may divide their personal assets and debts themselves, and make their division a part of their separation agreement. As a guide, the parties should attempt to reach an agreement whereby each party is receiving a fifty percent (50%) cut of the assets, as well as accounting for their debts.
Marital assets are all those assets that have been obtained during the marriage regardless of which spouse purchased the asset. Likewise, marital debt will include all debts acquired during the marriage which were used for the marriage. There are some items which are non-marital, such as inheritance or a personal gift. All marital property must be divided by the parties during their divorce and included in the separation agreement prepared by their lawyer.
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