Disclaimer: This is not legal advice and is for informational purposes only. For legal advice, please contact an attorney.
One of the most common questions we receive at Daussin Law Group is, “The judge ordered me to pay my ex-spouse, but I don’t have the money. What can I do?” Whether the obligation arises from an Alaska divorce, a property division dispute, a child custody case, or an attorney’s fee award, many Alaska residents find themselves facing a court order they genuinely do not have the financial ability to satisfy immediately. If you have received an order requiring you to pay money to your former spouse, it is important to understand what the order means, what options may be available, and what can happen if you simply cannot pay. At Daussin Law Group, Alaska family law attorneys Carolyn Nicole Daussin and Alexander Steinbach regularly assist clients throughout Wasilla, Palmer, Anchorage, Eagle River, Chugiak, and the Mat-Su Valley with divorce, custody, property division, post-judgment enforcement, and family law appeals.
One of the most common reasons a spouse is ordered to pay money after a divorce is an equalization payment. In Alaska divorce cases, courts divide marital property according to principles of equitable distribution. Although many cases begin with a presumption that an equal division is fair, Alaska courts ultimately seek a result that is equitable under the circumstances. Frequently, one spouse receives assets that are difficult or impossible to divide, such as a marital residence, a business, retirement accounts, investment accounts, or valuable real property. When one spouse receives a greater share of the marital estate, the court may order an equalization payment to balance the division. For example, if one spouse receives marital assets worth substantially more than the other spouse, the court may order that spouse to pay a sum of money to equalize the distribution. Importantly, many people mistakenly assume that an equalization payment means the court believes they have cash readily available. In reality, the value often exists only on paper through home equity, retirement accounts, or business interests that cannot easily be converted into cash.
Another common source of financial obligations in Alaska family law cases is an attorney’s fee award. Unlike many jurisdictions, Alaska courts have broad authority to award attorney’s fees in divorce and custody matters. In many family law cases, courts consider the relative economic situations of the parties when determining whether one party should contribute to the other’s legal fees. Courts may also award enhanced attorney’s fees when they determine that a party acted in bad faith, concealed assets, violated court orders, unnecessarily prolonged litigation, or otherwise engaged in unreasonable conduct during the proceedings. Attorney’s fee awards can range from relatively modest amounts to substantial sums depending upon the complexity of the case and the conduct of the parties. Receiving an attorney’s fee award against you does not necessarily mean the court believes you have the present ability to immediately pay the full amount.
If you believe the court made a factual or legal error when ordering an equalization payment or attorney’s fee award, one possible option is to seek reconsideration. A motion for reconsideration asks the court to revisit its decision because it overlooked important facts, misunderstood evidence, or committed a legal error. Reconsideration is not simply an opportunity to reargue points that the court has already considered and rejected. Rather, there must be a legitimate basis for asking the court to review its ruling. Because strict deadlines apply, it is important to consult with an experienced Alaska divorce attorney as soon as possible if you believe reconsideration may be appropriate.
In some circumstances, an appeal may also be available. If you believe the trial court committed a legal error, you may have the right to seek review by the Alaska Supreme Court. An appeal allows a higher court to determine whether the trial court correctly applied Alaska law. Appeals are often complex and highly dependent upon the specific facts and legal issues involved. Not every unfavorable ruling is grounds for appeal, but where a significant legal error has occurred, appellate review may be appropriate. Anyone considering an appeal should consult with an Alaska family law attorney promptly because appellate deadlines are strictly enforced and missing those deadlines can result in the loss of appellate rights.
Many people fear that if they cannot pay an equalization payment or attorney’s fee award, they will automatically be jailed or otherwise punished by the court. Generally speaking, Alaska courts recognize an important distinction between someone who refuses to comply with a court order and someone who genuinely lacks the financial ability to do so. Courts routinely encounter individuals who are experiencing financial hardship following a divorce. A person who has substantial assets or income and simply refuses to pay may face different consequences than a person who truly lacks the resources necessary to satisfy the obligation. Simply being unable to pay does not automatically result in punishment. Alaska courts generally do not punish individuals solely because they are poor or experiencing legitimate financial difficulties.
If a judgment remains unpaid, the other party may pursue lawful collection remedies. However, a judgment itself does not create money where none exists. Collection efforts often focus on determining whether assets, income, or other resources are available to satisfy the obligation. In many situations, parties are able to negotiate payment arrangements, settlements, or other practical solutions rather than engaging in prolonged collection proceedings. Every case is unique, and the options available will depend upon the individual’s financial circumstances, the nature of the judgment, and the specific facts involved.
If you have been ordered to pay money to your former spouse and do not have the financial ability to do so, it is important not to ignore the issue. Carefully review the court’s order, gather information regarding your income, debts, assets, and monthly expenses, and consult with an experienced Alaska family law attorney regarding your options. Depending upon the circumstances, reconsideration, appeal, negotiation, or other legal remedies may be available. The best course of action will vary from case to case.
If you have questions regarding an equalization payment, attorney’s fee award, divorce judgment, property division order, post-divorce enforcement matter, or family law appeal, the attorneys at Daussin Law Group may be able to help. Carolyn Nicole Daussin and Alexander Steinbach represent clients throughout Wasilla, Palmer, Anchorage, Eagle River, Chugiak, the Mat-Su Valley, and communities across Alaska in divorce, custody, property division, post-judgment litigation, and appellate matters. If a court has ordered you to pay your former spouse and you are unsure what options may be available, speaking with an experienced Alaska family law attorney can help you better understand your rights, obligations, and potential next steps.
FAQ
What happens if I cannot afford to pay a court-ordered divorce settlement in Alaska?
A: If you genuinely lack the financial ability to pay, Alaska courts generally will not punish or jail you. The court distinguishes between willful non-compliance and true financial hardship. However, your ex-spouse can still pursue lawful collection remedies against your available assets, income, or resources.
What is an equalization payment in an Alaska divorce?
A: An equalization payment is a sum of money ordered by a judge to balance the division of marital property. It often happens when one spouse receives high-value assets that cannot easily be split or liquidated, such as home equity, a business, or retirement accounts.
Can I challenge a judge’s order to pay my ex-spouse’s attorney fees in Alaska?
A: Yes. If the court made a factual or legal error, you can file a motion for reconsideration or a formal appeal to the Alaska Supreme Court. You must act quickly, as strict legal deadlines apply to these post-judgment options.
Will I go to jail in Alaska if I can’t afford a family court financial order?
A: No, you will not automatically go to jail solely because you are experiencing legitimate financial difficulties. Punishment is typically reserved for individuals who have the financial resources or income to pay but willfully refuse to comply with the court order.
What should I do if I receive an Alaska family court order to pay money I don’t have?
A: Do not ignore the order. Carefully document your financial situation, including your income, debts, assets, and living expenses. Immediately consult an experienced Alaska family law attorney to explore solutions like legal negotiation, a motion for reconsideration, or an appeal.