Cars can be considered marital property in Alabama divorce proceedings.
When a couple divorces, the need to distribute property is a common area in the dissolution process. Assets such as bank account funds, equity in real estate and automobiles are divided so each spouse walks away from the marriage with a certain percentage of assets. In some states, marital assets are divided equally. In Alabama, property, including cars, is awarded under the concept of "equitable distribution," which refers to what is fair to each spouse.
Property Defined
In Alabama, property is defined as either marital property or separate property. Marital property is any asset, including a car, the couple acquired together. Marital property can be real estate, automobiles, investments, interest in business ventures and others. Separate property is any asset the couple clearly owned before the date of marriage. Separate property can be cash, inheritance funds, cars, homes, investments and personal assets.
Equitable Distribution Factors
In Alabama, courts look at several areas to determine what is fair in the distribution of marital assets. Courts examine the length of the marriage, income and debt of both spouses, and when property was acquired and its present value. The court also looks at tax and financial consequences that could result from awarding property to one spouse versus the other. Children are also considered in the division of certain assets, such as homes and cars, as each is necessary in the child-raising process.
Who Gets the Cars?
If a car is a marital asset, the court will examine the age of the car, its value and which spouse uses the vehicle and for what purpose. For example, a van used to transport children to and from school and activities, driven by a mother but owned jointly, will likely be awarded to a the mother to be fair. If there is a loan on a car, the court will determine which spouse should be responsible for making payments if the couple cannot agree.
Tags: Alabama property, court will, each spouse, estate automobiles, marital assets
