Planning For Your Financial Future During A Divorce

One of the most challenging aspects of the process is that it may be challenging to plan out your future because so much of your life is in flux. A divorce is life-altering. The future you envisioned for yourself is changing. That doesn’t mean for the worse or better; it is just different.

Not knowing how your marital assets will be divided puts you in a difficult position. How can you plan when you don’t have a firm grasp of where your most significant assets will go? For example, will you or your spouse get your primary residence? Understanding how that gets divided has substantial implications on your financial future and potential investments. To help, we will outline how marital assets get divided in Alabama.

Equitable Distribution

Equitable does not mean equal, but it is connected to fair and reasonable. Everything is not guaranteed to be split 50/50. If your spouse worked and you didn’t, that doesn’t mean you aren’t entitled to anything either. The court doesn’t have a blanket policy that covers every divorce. It assesses a multitude of factors—all of which will take your unique circumstances into account. 

Though there are specific factors that all judges will consider, the overarching theme is simple. A judge ensures that each person walks away from the marriage in good standing. One of the things a judge looks at is the earning potential of each person. Age is another factor a judge considers. If, for example, you took care of the home while your spouse was employed and obtained advanced degrees, then your earning potential may be limited—especially if you are older. If you sacrificed your career (or never developed one) for the sake of your family, then that plays into how “equitable distribution” will be achieved.

Fair & Reasonable

Although it may take more work, equitable distribution seeks fairness. Look at the following examples:

  • Both of you married at 19 and divorced at 20
  • Both of you married at 19 and divorced at 55

These are very different scenarios. Length of marriage is a factor, but don’t fall into the trap of assuming one is better than the other. The judge looks into what happened during those years. 

John Totten, P.C.

Though there are specific things a judge considers during your divorce, there is still room for interpretation. Allow a professional and experienced attorney to represent you and your interests. By understanding and learning the details of your unique situation, we can ensure all assets are divided fairly and reasonably. Contact John Totten, P.C., to schedule a consultation.