Marital asset distribution laws govern the percentage of a pension plan a spouse obtains through an Alabama divorce. Marital assets include the portion of funds contributed by a spouse and her employer during the course of a marriage, according to DivorceInfo. In addition, any interest or other revenue generated during the marriage by the pension plan is also part of the marital assets.
Standard
Alabama establishes an equitable division of property standard in divorce and related proceedings, according to Help Yourself Divorce. The equitable division standard requires a court to divide the monetary additions to a pension plan that occurred during the marriage in a fair manner. Fair does not mean even. Rather, the judge is required to look at the unique circumstances of a case and fairly divide all assets, including each spouse's interests in a pension.
Misconceptions
A recurring misconception about Alabama law is that each spouse is entitled to that individual's specific pension. In other words, if both spouses work and have a pension, each individual walks away from the marriage with that pension intact and untouched by the other spouse. Because a pension is a marital asset, it is subject to division.
Time Frame
Two options exist when it comes to dividing a pension between spouses. First, the division can take place during or directly after divorce proceedings. The drawback with this plan is removing money from a pension plan early requires the payment of taxes and penalties. Second, you can obtain a qualified domestic relations order, under Alabama law. Through this decree, each spouse's marital share of a pension is divided at the time the spouse who acquired the plan retires. This process avoids penalties associated with an early withdrawal.
Considerations
Another consideration is trading the value of a pension plan set aside to the spouse who did not acquire the plan for another asset. For example, if the other spouse is entitled to $5,000 from the pension plan, the spouse with the plan can agree to a payment in that amount out of a bank account.
Expert Assistance
Divorce cases generally, and property division issues specifically, represent complicated legal matters. For this reason, consider retaining the services of a divorce attorney. The Alabama State Bar maintains a directory of attorneys that practice divorce law as a tool to assist you in finding a lawyer for your case.
