2018 was an eventful year for couples seeking a divorce. The Tax Cuts and Jobs Act will change the way everyone views alimony in 2019. Due to this impending massive change, many couples decided to break up and finalize their divorce settlement in 2018. However, it would be wrong to believe that 2018 did not bring any changes in divorce law.
The Alabama Legislature gave the legal community a lot to talk about in 2017. The implementation of these laws began on January 1, 2018.
HB 257 is the latest addition to Alabama law and eliminates the concept of “perpetual alimony.” According to this law, spouses are no longer entitled to maintenance payments that extend over their entire life.
Instead, the court has the authority to use rehabilitation or regular maintenance payments as the benchmark when determining spousal support. This was one of the most fundamental changes to divorce law in 2018.
Even if the court has the right to award alimony, certain limits apply. The court may deviate from the standard in circumstances that are considered “extraordinary.” According to Alabama law, rehabilitation alimony should not be spread over a period of more than five years. In special circumstances where the court deems a variation necessary, the maintenance period should preferably be less than or equal to the duration of the marriage.
The concept of “unlimited alimony” is suitable for cases where the duration of the marriage is 20 years or more. The changes to divorce law in 2018 and 2019 have a significant impact on the issue of maintenance.
Another bill affecting Alabama courts is HB 208. Enactment of this law also began on January 1, 2018. The primary focus of this bill is to change the treatment of retirement benefits.
Previously, there was no law requiring spouses to share retirement savings, but this bill proposes otherwise. Previously, only couples who had been married for more than ten years were entitled to a share of each other's retirement savings. However, this law eliminates the 10-year requirement for dividing retirement assets.
It is worth noting that, unlike other changes in divorce law, this law leaves room for negotiation. This means that the division of retirement savings does not become a standard procedure. Rather, it gives the courts the opportunity to decide in favor of shared use; This is the case even if the couple has been married for less than 10 years.
Summary
It is important for family law attorneys to keep up with new laws and regulations. All of these changes in divorce law affect the rights of each spouse. Additionally, these laws also change each spouse's financial situation in many ways. The implementation of the TCJA in 2019 will have a significant impact on the support issues of all divorcing couples. It is essential that each spouse carefully considers the impact of a divorce on their future financial situation.
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