How Alabama courts handle asset division in a divorce

Choosing to divorce in Alabama can be a difficult decision. Much like marrying, divorcing is a legally binding process that requires preparation and careful consideration. Once you know that divorce is inevitable in your marriage, however, you’re going to start wondering about the potential outcome of the process. There are many uncertainties involved in divorce, including custody of minor children, child and spousal support (alimony), and division of your marital assets and debts. While every marriage is inherently unique, knowing how the courts approach asset division in Alabama can help you understand the likely outcome of your divorce. Even if you can’t predict exactly what terms the courts will set, barring the existence of a valid prenuptial agreement, you can create an informed guess about the potential outcome of asset division when you understand state laws on the topic. Alabama is an equitable distribution state State law in Alabama requires … Continue reading How Alabama courts handle asset division in a divorce

3 moves to help alleviate financial headaches during divorce

Going through divorce is a difficult experience emotionally for both spouses. Additionally, there can be significant financial burdens for those couples who are navigating through divorce proceedings. Fortunately, taking a few proactive measures can help you limit the financial headaches that divorce can cause. 1. Check your joint accounts During your marriage, you and your spouse likely opened joint credit cards together. Now that you are divorcing, it is time to begin separating your finances from your spouse’s. The first thing you should do is to begin to close or freeze any joint credit accounts you have together. If you both share an account, you may be responsible for any irresponsible spending or debt that your partner incurs. It is also a good idea to remove your spouse as an authorized user on any of your personal accounts. If you are worried about your spouse opening up additional lines of … Continue reading 3 moves to help alleviate financial headaches during divorce

Planning to file for divorce in 2018? Do these 3 things first

There is typically an increase in the number of new divorce filings early in the year. This may be partly due to people waiting for the holidays to end, while others may simply have simply resolved to make a major change in their lives. In fact, because divorces are so common early in the year, some family law attorneys refer to the first working Monday of the year as “Divorce Day.” If you are thinking about filing for divorce in 2018, you may wonder what steps you should perform before initiating the process. Taking these three actions early in the year can help prepare for the process. 1. Collect Your Financial Data One of the biggest issues that spouses need to resolve is the distribution of assets. Taking inventory of your income, debts, expenses and savings will help streamline the divorce process on your end. This information can also be … Continue reading Planning to file for divorce in 2018? Do these 3 things first

How the tax overhaul affects alimony payments

When the GOP passed its tax bill last December, there was a lot of discussion surrounding the reduction in rates for individuals and businesses. What has received less attention is how some tax deductions would be reduced or eliminated altogether. One implication of these changes impacts people who pay alimony to an ex-spouse. The three types of alimony in Alabama While it is not a feature of every divorce, there may be three different types of alimony (also known as spousal support) awarded to a spouse during divorce proceedings: Rehabilitative: This is a temporary form of alimony awarded to a spouse to help them transition into their new life after divorce. Periodic: This is often a longer-term form of alimony that a judge may award to a spouse who stopped working to care for the couple’s children or home. Alimony in gross: When disputes over the distribution of property arise … Continue reading How the tax overhaul affects alimony payments

5 key things to know about the adoption tax credit

There was some concern as the recently pass tax billed made its way through Congress that the adoption tax credit would be discontinued. Fortunately, for parents who are thinking about adoption, legislators preserved the credit. While we know that the adoption tax credit is still available to for families, there remains a great deal of confusion surrounding it. Below are elements of the tax credit that adoptive parents should be aware of: Overview of the credit: The adoption tax credit is a nonrefundable credit. This means it cannot reduce a taxpayer’s tax burden below zero. However, if there are unused tax credits, they can be carried over to next year. It is important to note that there is a five-year limit for adoptive parents to fully use the credit. Eligibility: People may be able to take advantage of the adoption tax credit when adopting a child who is under the … Continue reading 5 key things to know about the adoption tax credit