Financial Analysis for Divorce and Marital Dissolution in Alabama

By Christopher Skerritt, M.Ed., MBA, Chief of Economic Services · Published · Reviewed

KW Economics prepares financial analyses for divorce and marital dissolution matters venued in Alabama: income available for support, the value of business interests in the marital estate, and the tracing of separate and marital funds, each presented so that either spouse or the court can examine the figures.

A divorce or marital dissolution matter asks what income each spouse has available for support, what the marital assets, including any business interest, are worth for the division of the estate, and which assets are separate rather than marital. Each is answered from the business books, tax returns, and account histories rather than from the tax return alone. Read the full divorce and marital dissolution analysis guide.

Alabama courts and expert standards

Alabama applies a reliability inquiry to scientific evidence and asks of other expert testimony whether the witness is qualified by training and experience and whether the opinion will assist the jury, so an economic damages opinion is tested mainly on its inputs: whether each rate, table, and assumption traces to the record and to a published source.

Where these cases are heard

Highest court: Supreme Court of Alabama. Federal venues: N.D. Ala., M.D. Ala., S.D. Ala. Court system: alacourt.gov.

Legal framework

Whether Alabama divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position.

How the analysis is built

The same four steps apply to a divorce and marital dissolution matter venued in Alabama; the governing framework in Alabama decides how each finding is applied.

  1. Normalize the business's cash flow for owner compensation, personal expenses paid through the business, related-party dealings, and non-recurring items, listing each adjustment with its source.
  2. Value the business or practice as of the date the governing framework requires, under the income, market, and asset approaches as the facts support, and address personal and enterprise goodwill where the framework distinguishes them.
  3. Determine each spouse's income available for support from the same normalized statements, including distributions, perquisites, and cash flow retained in the business beyond reported salary.
  4. Trace separate property through the account statements step by step, classify commingled funds under the framework counsel identifies, and reduce pensions and deferred compensation to present value with the assumptions stated.

Attorney guides for divorce and marital dissolution cases

Other case types in Alabama

Frequently asked: divorce and marital dissolution cases in Alabama

Which Alabama courts hear divorce and marital dissolution cases?

Divorce and Marital Dissolution cases venued in Alabama are heard in the Circuit Court (General jurisdiction trial court; hears larger civil cases and all felony criminal cases). Final appeals run to the Supreme Court of Alabama. Matters within federal jurisdiction proceed in the United States District Courts for the Northern District of Alabama, Middle District of Alabama, and Southern District of Alabama.

How does Alabama's family-law framework shape the financial analysis?

Whether Alabama divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position. Alabama applies a reliability inquiry to scientific evidence and asks of other expert testimony whether the witness is qualified by training and experience and whether the opinion will assist the jury, so an economic damages opinion is tested mainly on its inputs: whether each rate, table, and assumption traces to the record and to a published source.

More questions about divorce and marital dissolution analysis

References

Request a consultation on divorce and marital dissolution cases in Alabama or call (201) 343-0700. Plaintiff and defense counsel.