Alabama Marital Property Laws for Debt Collectors & Judgment Creditors

🌟 Alabama Marital Property: The Creditor’s Overview

Alabama is a traditional common law property state — one of approximately 40 U.S. jurisdictions that follow separate ownership principles for marital property. Each spouse owns property they individually earn, purchase, or inherit. There is no community property system in Alabama, no opt-in CP mechanism, and no presumption of shared ownership simply because parties are married.

For judgment creditors, this means enforcement targets are the debtor’s individually owned assets: wages (garnishable at the federal CCPA limit), individual bank accounts, vehicles titled in the debtor’s name, and real property not protected by the homestead exemption or tenancy by the entirety. Alabama does recognize TBE for real property held jointly by married spouses — the primary obstacle for reaching jointly held marital real estate with a single-spouse judgment.

⚖️ How Alabama Common Law Property Works

Under Alabama’s common law property system, ownership of marital assets follows title and source of funds rather than any automatic marital sharing principle. The practical rules for creditors are straightforward: if the asset is in the debtor’s name, it’s generally reachable. If it’s in the non-debtor spouse’s name alone, it’s generally not reachable for the debtor’s individual obligations.

🔑 Core Rules for Creditors

• 💵Wages earned by the debtor spouse belong to that spouse — garnishable at up to 25% of disposable earnings
• 🏦Bank accounts in the debtor’s name alone are fully reachable via writ of execution
• 👫Joint bank accounts: the debtor’s proportionate share (typically 50%) is reachable — Alabama does not generally extend TBE protection to bank accounts
• 🚗Vehicles titled solely in the debtor’s name are reachable after the $3,000 vehicle exemption
• 🏠Real property titled in debtor’s name alone: reachable above the $15,500 homestead exemption
• 🔒Real property titled jointly as TBE: shielded against single-spouse judgment creditor
• 💼Business assets owned by the debtor individually: reachable through execution

🔒 Tenancy by the Entirety in Alabama

Alabama recognizes tenancy by the entirety for real property held jointly by married spouses. TBE is a form of joint ownership that treats the marital couple as a single legal unit — neither spouse can unilaterally convey their interest, and a judgment against only one spouse cannot be enforced against TBE property. This is the primary protection for jointly held marital real estate in Alabama against single-creditor claims.

🎯 How TBE Affects Your Alabama Enforcement Strategy

• 🔒TBE real property is shielded from a judgment against only one spouse — even the debtor’s “half” cannot be reached
• ⚖️TBE is destroyed when both spouses are joint debtors — if both signed the obligation, TBE protection is eliminated
• 💀TBE ends at death of either spouse — the surviving spouse takes full ownership as separate property
• 📋TBE ends at divorce — the property converts to tenancy in common, and the debtor’s 50% becomes directly reachable
• 🏦Alabama does NOT generally extend TBE to bank accounts — joint accounts are reachable for the debtor’s share
• 🏠Focus single-spouse enforcement on individually titled real property — Alabama has substantial individually held real estate, particularly timber land and agricultural property

👩‍⚖️ Spousal Liability for Debts in Alabama

Under Alabama common law, each spouse is generally not liable for the other’s individual debts. A judgment against the debtor spouse is collectible from that spouse’s separate assets and their interest in jointly held property. The non-debtor spouse’s individually held assets are protected from the debtor spouse’s separate obligations.

🔴 When Both Spouses May Be Liable in Alabama

• 📃Joint contracts — both spouses co-signed or are jointly named as obligors
• 🏥Necessaries doctrine — Alabama Code §30-2-51 creates liability for expenses necessary to maintain the family
• 💳Joint credit accounts — both spouses are account holders or co-applicants
• 🏠Joint mortgage — both spouses signed the promissory note and deed of trust
• 💼Agency — if the debtor spouse incurred the debt as the agent of both spouses (common in household management situations)

💰 Alabama Wage Garnishment Rules

Alabama follows federal CCPA garnishment limits without imposing additional state-level debtor protections that effectively eliminate consumer wage garnishment. Creditors may garnish up to 25% of the debtor’s disposable earnings. Alabama’s major employment sectors — automotive manufacturing (Toyota, Honda, Mercedes-Benz plants), aerospace (Huntsville), healthcare, and construction — provide steady wage income amenable to garnishment.

🏠 Judgment Liens on Alabama Real Property

Alabama judgment liens are created by recording the judgment in the Probate Court in each county where the debtor owns real property. The $15,500 homestead exemption leaves most Alabama residential property equity exposed — particularly in the Birmingham, Huntsville, and Mobile metro markets where home values commonly reach $200,000–$400,000.

📋 How to Record a Judgment Lien in Alabama

1. 🏛️ Obtain certified judgment copyGet a certified copy from the Alabama Circuit Court clerk. For out-of-state judgments, domesticate in Alabama Circuit Court under the Uniform Enforcement of Foreign Judgments Act (Ala. Code §6-9-230).
2. 📋 Record in the Probate CourtAlabama judgments are recorded with the Probate Judge (not a separate Recorder) in each county where the debtor owns real property. Alabama has 67 counties — search statewide for all real property holdings before recording.
3. 🔒 Identify TBE vs. individually held real propertyJointly held marital real property may be TBE-protected against a single-spouse judgment. Review deeds carefully — focus lien recording on individually titled property and investment real estate.
4. 🔄 Renew before 10-year expirationAlabama judgment liens are valid for 10 years and can be renewed. Keep renewal dates calendared — priority is determined by recording date.

🏦 Bank Account Levies & Personal Property in Alabama

🔑 Key Rules for Alabama Bank Levies

• 📋Obtain a writ of garnishment from the circuit or district court after entry of judgment
• 🏦Serve the writ on the financial institution — Alabama uses garnishment (not “levy”) terminology for bank accounts
• 👫Joint accounts: the debtor’s proportionate share is reachable — Alabama does not extend TBE to bank accounts as a general rule
• 💵Federal benefit deposits: automatically protected for 2 months of direct deposits under federal law
• 🏭Employer payroll accounts: identify the financial institution where the debtor’s employer deposits payroll — large Alabama manufacturers (Toyota Georgetown plant, Honda Lincoln plant, Mercedes Vance plant) use identifiable payroll depositories
• 🔔Defendant has 30 days to file exemption claim after service of the garnishment — be prepared with documentation to contest exemption claims

🚗 Vehicle and Personal Property Levy

Alabama’s motor vehicle exemption is $3,000 — leaving most vehicles with meaningful value fully exposed above the exemption. A writ of execution served through the county sheriff can reach individually titled vehicles. Our vehicle location service identifies Alabama DMV-registered vehicles for both the debtor and their spouse.

🛡️ Alabama Property Exemptions

🔍 Skip Tracing Married Debtors in Alabama

Alabama’s 67 counties span a diverse state — from the urban Birmingham-Hoover and Huntsville metro areas, through the historic plantation-era Black Belt counties of central Alabama, to the Gulf Coast communities of Mobile and Baldwin counties. Skip tracing challenges vary by region: urban areas have high residential mobility and thin database accuracy; rural Black Belt counties have sparse population and limited digital footprints; Gulf Coast communities have seasonal residents and snowbird populations that split time between Alabama and other states.

📋 Step-by-Step: Collecting from a Married Alabama Debtor

1. 🔍 Confirm marital status and identify the spouseDetermine whether the debtor is married and identify the spouse. Under Alabama common law, the spouse’s separately held assets are not reachable — but co-signed obligations create joint liability. Use our marital status investigation service.
2. 💼 Identify employer — wage garnishment is your first toolAlabama allows continuing wage garnishment writs — one filing covers multiple pay periods. Identifying the employer is a first-priority step. Major Alabama employers include Toyota Georgetown, Honda Lincoln, Mercedes Vance, Boeing Huntsville, and large hospital systems. Use our employer identification service.
3. 🏠 Run statewide property search including mineral and timber rightsSearch all 67 county probate courts for real property, mineral rights, and timber deeds. Individually titled property is directly reachable above the $15,500 homestead cap. Use our professional asset search.
4. 📋 Record judgment liens in probate courtFile certified judgment copies in each Alabama county where the debtor holds individually titled real property. Focus on non-homestead property — investment real estate, timber land, mineral rights, and commercial property. See our judgment lien guide.
5. 🏦 Serve writ of garnishment on financial institutionsJoint bank accounts are reachable for the debtor’s share in Alabama (no automatic TBE for bank accounts). Identify accounts at regional banks (Regions Bank, Protective Life, Synovus) and credit unions common in Alabama. See our asset levy guide.
6. 🚗 Levy vehicles and personal propertyAlabama’s $3,000 vehicle exemption leaves most vehicle equity exposed. Work with the county sheriff for execution. Use our vehicle location service.
7. 📋 Schedule debtor examinationCompel disclosure of all assets — particularly mineral rights, timber interests, retirement accounts, and business interests that may not appear in standard database searches. See our debtor examination guide.

❓ Frequently Asked Questions

🔗 Related Resources

⚖️ Other Common Law States

🔍 Enforcement & Collection Guides