HB208 Alabama 2017 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Merika ColemanSenator
Democrat
Session: Regular Session 2017
Title: Divorce, retirement benefits, valuation and distribution, Sec. 30-2-51 am'd.
Summary: HB208 changes how retirement benefits are valued and divided in divorce, clarifying the share for the non-covered spouse, how passive value changes are handled, and when payments start, with an effective date of January 1, 2018.
What This Bill Does
The bill allows the court to include the present value of retirement benefits in the marital estate under certain conditions, including that the retirement was accumulated during 10 years of marriage. It caps the non-covered spouse’s share at 50% of the benefits the court considers. The court may use any fair method to value, divide, and distribute the retirement benefits, as long as the overall result is equitable. Any passive increases or decreases in value between the award and distribution are shared equally, and payments to the non-covered spouse are delayed until the covered spouse starts receiving benefits or reaches age 65 (unless a lump-sum settlement is agreed).

Who It Affects
Divorcing spouses who have retirement benefits and need to understand how those benefits may be valued, divided, and paid (including the 50% cap for the non-covered spouse and when payments can begin).
Spouses with retirement benefits earned before marriage, as such benefits are excluded from the marital estate unless proven otherwise, reducing what can be divided in a divorce.

Key Provisions
Allows the court to include the present value of current or future retirement benefits in the marital estate, with conditions tied to the marriage duration during which the retirement was accumulated.
The non-covered spouse's total share cannot exceed 50 percent of the retirement benefits that may be considered by the court.
The court may use any equitable method to value, divide, and distribute retirement benefits, as long as the overall distribution remains fair.
Passive increases or decreases in retirement value from the award date to distribution are shared equally between the parties (pro rata).
Payments to the non-covered spouse are not payable until the covered spouse begins to receive benefits or reaches age 65, unless a lump-sum settlement is agreed.
Effective date: January 1, 2018.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Alimony