Those who are planning a divorce in Alabama often worry about their finances. Dividing property is an intrinsic element of divorce, and people’s economic circumstances will change significantly as a result of this process.
Generally speaking, couples either agree about how to divide their property or take the matter to family court. Judges can apply the Alabama equitable distribution statute according to their perception of the situation.
Whether spouses agree on a settlement or litigate property division, what happens with their marital home will often be a focal point of the process. What usually happens to the house where people live together during an Alabama divorce?
One spouse keeps the home
Either spouse might retain possession of the home after the divorce. If there are children in the family, the need for stability and maintaining consistent school enrollment might influence how a judge rules. Otherwise, either spouse could potentially retain the home. The spouse staying in the home often needs to refinance their home to withdraw equity in such scenarios.
The house is sold
People have recently purchased the property or if neither spouse wants to continue living there after the divorce, the best option might be to sell the home. Couples sometimes reach this conclusion on their own. Other times, judges tell them that is how they must proceed. Selling the marital home and splitting the proceeds is a way for each spouse to receive a fair amount of the accumulated equity to invest in rebuilding their lives after the divorce.
The former spouses maintain joint ownership
Sometimes, couples decide to treat their home as an investment. They might arrange for continued joint ownership to improve it and then sell it. They might even rent it out as a source of income. Occasionally, couples attempt birdnesting custody arrangements where they alternate staying in the marital home with the children and maintain a separate residence elsewhere.
When couples set their own terms during an Alabama divorce, they have the control to utilize additional creative solutions. Litigation can lead to a variety of different solutions based on what a judge deems would be reasonable and fair. Understanding that options for handling a couple’s most valuable marital assets may help people prepare more effectively for a divorce.