When a married couple decides to part ways, they have additional decisions to make, especially if they have had children together. While their reasons for ending their relationship might have nothing to do with money, financial issues will be a central focus of their settlement. If you’re preparing for a Washington divorce, there are several issues to keep in mind regarding asset protection.
In case you don’t already know, you live in a state with unique property division laws. Most states operate under equitable property guidelines in divorce. This state, however, is one of several others that uses community property guidelines, which means that a judge will equally divide all your marital property between you and your ex as part of your settlement.
Take note of any separately owned assets you might have before settling your divorce
In a community property state like Washington, it’s important to distinguish between jointly owned assets and assets you own separately from your spouse. If you don’t claim an asset under separate ownership, it will be split 50/50 between you both. Assets you may be able to claim separately include things like an inheritance, items or funds listed in a prenuptial agreement under separate ownership or money in a bank account that you have held separately from your spouse since before you were married, having never comingled the funds into a jointly owned account.
Decide how you will handle pension assets
If you have a pension plan through your employer, your ex is entitled to a portion as part of property division proceedings in your divorce. It may be possible for you to “buy out” his or her shares. This means that you would pay your ex a lump sum of money, calculated using the pension’s current value. Beyond that lump sum, your ex would no longer have a right to half of your annuity payments in retirement.
Don’t forget to factor in debt when determining assets in divorce
Under Washington community property guidelines, not only do you have a right to half of your marital property, you’re also responsible for half of any debt that you and your spouse accrued during marriage. Similar rules apply to debts as well as assets, meaning your spouse might be solely responsible for a specific debt if he or she carried it into the marriage, such as a student loan.
It’s important to seek clarification of divorce laws in this state to ensure a fair settlement. If you’re concerned about any aspect of division proceedings, it’s always best to seek additional guidance rather than try to resolve the issue on your own, especially if you do not have a legal background in Washington family law.