4 Changes that Affect Family Law / Divorce Cases
Family law in Alabama has seen significant changes recently, impacting alimony, child support, tax brackets, and more. Below, we detail these important updates to help you navigate the legal landscape.
Life Insurance Policy Court-Ordered to Secure Alimony Obligation
A recent case from the Alabama Court of Civil Appeals, Turney v. Turney, clarifies that trial courts lack the authority to mandate life insurance to secure alimony payments. This case, decided on December 2, 2022, overturned a previous ruling that required a husband to maintain a life insurance policy to cover periodic alimony obligations to his wife. The court reasoned that alimony payments terminate upon the payor's death, making it inequitable to require life insurance as an additional benefit beyond the end of the alimony obligation. However, parties can still voluntarily agree to maintain life insurance as part of a negotiated marital settlement.
New 2024 Tax Bracket Adjustments
The IRS has adjusted the income limits for tax brackets by approximately 5.4% for the 2024 tax year to account for inflation. This update aims to prevent "bracket creep," where inflation pushes incomes into higher tax brackets without actual increases in living standards. There are seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The standard deduction will also increase, with amounts varying by filing status. For instance, married couples filing jointly will see their standard deduction rise to $29,200, single filers to $14,600, and heads of household to $21,900. Additionally, limits for Flexible Spending Accounts and Health Savings Accounts will increase, offering more tax advantages for healthcare expenses.
Alabama’s New Child Support Calculations for Joint Physical Custody
Effective June 1, 2023, Alabama revised Rule 32 of the ARJA Child Support Guidelines to better address joint physical custody scenarios. The amendment ensures that financial responsibilities are fairly shared between parents who have equal physical custody of their child. Previously, child support calculations assumed primary custody by one parent, often leading to imbalances. The revised rule introduces a 150% multiplier to the basic child support obligation in joint physical custody cases, using the CS-42-S Form to reflect these changes accurately. This update aims to create a more equitable financial arrangement for both parents.
Alimony Updates Refresher
Significant changes to alimony laws have been in effect since January 1, 2018. Alabama law now favors rehabilitative alimony over permanent periodic alimony. Rehabilitative alimony is limited to five years, provided the recipient can demonstrate the ability to achieve financial independence within that period. If necessary, the court can extend this duration, but it cannot exceed the length of the marriage, except in cases of marriages lasting over 20 years, where permanent alimony can still be awarded for good cause. These changes aim to help recipients transition to self-sufficiency while preserving the economic status quo of the marriage.
Please consult your attorney or legal counsel for more information on how these updates affect your individual situation.
These updates highlight the evolving nature of family law in Alabama, ensuring that legal practices keep pace with changing societal needs and economic conditions. For more detailed advice and personalized guidance, always seek professional legal assistance.
The information contained in this material is being provided for general educational and informational purposes only, with the specific understanding that it is not intended to be used or interpreted as specific legal or tax advice.
The content is not intended to be a substitute for professional legal advice. Neither Jessie Keating Hardy nor J. Hardy Family Law are establishing any attorney-client relationship with this informational article. If you have questions, you should consult with a lawyer experienced in domestic law.