It’s widely known that “money trouble” is one of the most common reasons reported as causing a divorce. So it really should come as no surprise that outside of child custody, financial matters are typically the most highly contested issues in a divorce.
Having a lawyer on your side while going through a divorce is important; not only so that you understand how the law applies to your situation, but also so that you have someone advocating on your behalf. The decisions that you make during your divorce will affect your financial situation for years to come. Make sure that your rights are protected and that you receive what you deserve.
Through the divorce process, several decisions need to be made about how assets will be divided. Typically the court would rely on the divorcing parties and their attorneys to come to an agreement. If the two parties are unable to come to an agreement, the court will divide the assets. However, it is typically far better for the two parties to come to an agreement on their own as it gives much more control, takes less time and costs a lot less in attorneys fees.
If there are minor children involved in your divorce, or if you have determined the paternity and custody arrangements (in cases where the parents were not married) then the parent who has the higher income will typically pay child support to the parent who has primary custody. Alabama has a fairly straightforward equation that considers the income of the parents, the cost of health insurance, and how many children are involved. For help understanding how Alabama’s child support laws affect you, or to pursue a modification contact our office.
Unlike child support, where the calculation is relatively simple, alimony is far more complex and takes several factors into consideration. There are cases where alimony is awarded as a lump sum or it can also be arranged as on-going payments. The actual amount of the alimony payments are based on a variety of factors including:
It is important to take 401(k) accounts, IRAs and other retirement accounts into consideration when evaluating assets in a divorce. There are cases where the tax penalties of liquidating or “cashing out” a retirement account make it impossible to split. In these cases, arrangements can be made to effectively split the account into two without incurring any tax liability or early withdrawal penalties.
There are a variety of financial issues that need to be worked on through a divorce. At Capps & Associates in Dothan, Alabama, we can help you understand how Alabama family law applies to your situation and your options for moving forward. To take the first step, contact our office today.