When a couple decides to end their marriage, they must resolve various issues such as property, assets, and debts. One item that often causes confusion is the family vehicle. This article will clarify what happens to the family vehicle in an Alabama divorce.
Overview of Alabama Divorce Laws
Before discussing the fate of the family vehicle, it’s important to understand how Alabama divorce laws work. Alabama is an equitable distribution state, which means that the courts distribute the marital property fairly, but not necessarily equally, between the spouses. Marital property refers to assets and debts acquired during the marriage, while separate property is owned by one spouse before the marriage or acquired by gift, inheritance, or personal injury settlement.
Is the Family Vehicle Marital Property?
The first question to ask is whether the family vehicle is considered marital property. If one spouse bought the vehicle before the marriage and has kept it solely in their name, it’s likely to be separate property. However, most family vehicles are acquired during the marriage and used by both spouses, making them marital property.
How is the Family Vehicle Distributed?
Once it has been established that the family vehicle is marital property, the court will consider various factors to determine how it should be distributed. The goal is to achieve a fair and reasonable outcome that takes into account the spouses’ individual needs and contributions.
Option 1: Sell the Vehicle and Divide the Proceeds
One option is to sell the vehicle and divide the proceeds between the spouses. If the car was owned outright, the proceeds would be split 50/50. However, if the car was subject to a loan, the remaining balance would first need to be paid off before dividing any leftover funds.
Option 2: Award the Vehicle to One Spouse
Another option is to award the vehicle to one spouse and compensate the other spouse with other assets or cash to balance out the distribution. For example, if one spouse wants to keep the car, they may agree to take on more of the marital debt or give up other assets worth a similar value.
Option 3: Share Custody of the Vehicle
If both spouses have a strong attachment to the vehicle and it’s feasible to share custody, the court may allow them to alternate possession of the car based on a specific schedule or agreement.
Conclusion
In summary, the family vehicle is typically considered marital property in an Alabama divorce, which means that it needs to be distributed fairly between the spouses. The court may decide to sell the vehicle and divide the proceeds, award it to one spouse and compensate the other, or allow both spouses to share custody. If you’re going through a divorce and have questions about how to handle your family vehicle, it’s best to consult with an experienced divorce attorney to ensure that your rights and interests are protected.