Property division is a critical part of any divorce. In Alabama, courts follow the principle of equitable distribution, which means dividing marital property fairly, though not always equally. To divide property effectively, it’s essential to understand the difference between marital and separate property under state law.
What is marital property?
Marital property includes assets acquired by either spouse during the marriage. This can include income, real estate, retirement accounts, vehicles, and other property obtained while married. Courts view these assets as jointly owned, regardless of whose name appears on the title or account.
For example, if one spouse earns a paycheck while the other stays home, the income and any purchases made with it are considered marital property. Similarly, retirement benefits accrued during the marriage fall into this category.
What is separate property?
Separate property refers to assets owned by one spouse before the marriage or acquired individually during the marriage through inheritance or gifts. For instance, a family heirloom or a house purchased before the wedding generally remains separate property.
However, separate property can lose its classification if it becomes commingled with marital property. For example, if a spouse deposits inherited money into a joint bank account and both spouses use the funds, it may be treated as marital property in a divorce.
How does Alabama handle mixed property?
Some assets fall into a gray area called mixed property, where separate and marital assets combine. State courts evaluate these situations on a case-by-case basis. For example, if one spouse uses marital funds to renovate a home owned before the marriage, the home’s increased value might qualify as marital property.
Understanding the distinction between marital and separate property under state law is key to protecting your assets during a divorce. Keeping thorough records and avoiding commingling can help ensure a fair outcome in court.