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Dealing with separate finances in a divorce

On Behalf of | Jul 3, 2019 | Divorce

When people in Alabama decide to divorce, they may be deeply concerned about the effects on their finances. After all, the financial implications of divorce can linger on long after the emotional fallout settles. Many newlyweds are choosing to keep their banking accounts somewhat separate. This involves maintaining individual accounts or paying only part of an income into a joint account for the home and other bills. Younger people are more likely to opt for separate banking, perhaps due to the popularity of instant online transfer apps that make it easy to share funds.

Some people may opt for separate finances because they want to make it easier to handle their funds in case of a potential future divorce. However, keeping separate bank accounts is not sufficient to provide this kind of protection. Marital assets remain marital, even if only one person’s name is on the account. Since Alabama is an equitable distribution state, finances and property accumulated during marriage are divided based on principles of fairness rather than strictly in half. However, this does not mean that simply keeping separate bank accounts is enough to have that income excluded from the marital pot.

A prenuptial or postnuptial agreement could resolve these issues officially. Analysts have reported that these documents are becoming more popular alongside the growing trend for separate finances. Such agreements allow for a clear reference point for what is to be considered marital property long before a relationship descends into acrimony or dislike.

If both divorcing spouses agree about the fairness of a certain method of dividing their assets, they could find it easier to reach an agreement through their attorneys. A family law attorney can represent a divorcing spouse on a range of legal issues, including property division and other financial concerns.

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