HB371 Alabama 2015 Session

Summary

Primary Sponsor

Mike Jones

Republican

Session

Regular Session 2015

Title

Divorce, retirement benefits, valuation and distribution, Sec. 30-2-51 am'd.

Summary

HB371 would change how retirement benefits are divided in divorce by expanding valuation options, reforming share limits, and adjusting when benefits are paid.

What This Bill Does

The bill would allow the court to use broader, equitable methods to value, divide, and distribute retirement benefits in a divorce, with a cap that the noncovered spouse can receive no more than 50% of the benefits the court considers. It would remove (per description) the previous requirement tied to a long marriage for awards, and it would make the distribution timing such that the noncovered spouse’s benefits are payable when the covered spouse begins receiving benefits (or at age 65) unless the parties agree to a lump-sum settlement. It also requires both parties to share equally any passive increases or decreases in value from the time of the award to distribution, and allows protective orders to preserve each spouse’s interest in the benefits.

Who It Affects

• Spouses going through a divorce who have retirement benefits, since how those benefits are valued, divided, and paid would change.
• Noncovered spouses who may receive retirement benefits from the other spouse, as their potential share could be limited to 50% and would be affected by when and how those benefits are paid.

Key Provisions

• Eliminates or relaxes the requirement that spouses must have been married for a certain period to receive an award of retirement benefits in a divorce (per bill description).
• Allows the court to use any equitable method to value, divide, or distribute retirement benefits, with the noncovered spouse limited to no more than 50% of the benefits considered by the court.
• Requires that both parties share equally the burden or benefit of passive appreciation or depreciation of retirement benefits between the award and distribution.
• Noncovered spouse’s benefits are payable when the covered spouse begins to receive benefits (or at age 65) unless the parties agree to a lump-sum settlement.
• Preserves equitable division of the marital estate and allows protective orders to preserve a spouse’s interest in retirement benefits, while prohibiting modifications to the terms of retirement plans.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Divorce