Property Division in an Alabama Divorce

Alabama follows the legal principle of equitable distribution when dividing property during a divorce. This means that the division of marital property should be fair, but not necessarily equal.

All divorce cases in Alabama are handled by the Circuit Court in the appropriate county. Courts will divide marital assets and debts based on a number of factors, including the length of the marriage, contributions by each spouse, and the overall financial situation of both parties.


Marital vs. Non-Marital Property

Marital property generally includes any assets acquired by either spouse during the marriage using income earned during the marriage — regardless of whose name is on the title.

Non-marital property typically includes:

  • Property owned before the marriage
  • Inheritances or gifts received from third parties
  • Property excluded by a valid prenuptial or postnuptial agreement
  • Income or assets kept separate and traceable to non-marital sources

Key Examples of Marital Property:

  • A vehicle purchased during the marriage, even if titled to one spouse
  • A home purchased jointly or titled in both names
  • Interspousal gifts (e.g., birthday or anniversary gifts)
  • Property held as tenants by the entireties — a form of joint ownership between married spouses

When the court divides marital property, it considers fairness—not just a 50/50 split. Courts aim for a division that reflects the circumstances of both spouses, especially where one may have significantly greater income or financial needs post-divorce.


Key Examples of Non-Marital Property:

  • A car or asset owned by one spouse before the marriage
  • A personal inheritance received by one spouse
  • Property specifically excluded by a legal marital agreement
  • Income from rental property owned before marriage, if kept separate

Liabilities and Debt Division

Just like assets, debts are also classified as either marital or non-marital.

  • Marital debts (e.g., credit cards or loans incurred during the marriage) are usually divided fairly between spouses.
  • Non-marital debts (e.g., student loans from before the marriage) typically remain the responsibility of the spouse who incurred them.

For example, a credit card used for household expenses may be divided, while personal debts or obligations predating the marriage may remain with the individual spouse.


Final Note

Property and debt division in Alabama is based on equity, not just ownership or whose name is on the account. Each case is fact-specific, and outcomes may vary depending on the financial details and any agreements made between the spouses.

If you and your spouse are in agreement on how to divide your property and debts, these terms can be included in your uncontested divorce documents, which will be reviewed and approved by the court.