How Is Property Divided in a Divorce? Divorce Checklist Washington State

If you are expecting a divorce in Washington, you should be aware that property division is often a highly contentious stage of divorce.

Washington law considers property acquired during marriage to be community property and seeks to divide said property fairly during divorce proceedings. In practice, this can be difficult. The following checklist will help you grasp the issues involved.

How Are Assets Divided in Washington State?

As a community property state, Washington considers all assets and debts acquired after marriage vows to belong equally to both parties. In a divorce, the law seeks to equally divide this property between the spouses. However, this does not mean a 50/50 split of the assets. Instead, it means a fair distribution of the assets.

Ultimately, the distribution process seeks to end the distribution with both spouses on the same level, more or less. Additionally, maintaining the lifestyle the parties enjoyed during the marriage is also important to the court.

Distribution of community property requires two tasks to be completed initially:

• Determining whether an asset or a debt is community or separate property.
• Appraising the community assets and debts.

Keep in mind that separate property may become community property during the course of the marriage. This transition, sometimes referred to as transmutation, may occur voluntarily or inadvertently.

For example, a spouse with significant cash assets may end up co-mingling these funds with community funds, making it impossible to distinguish between the two. Whether they do this on purpose or accidentally may not matter to a determination of community or separate property.

Does Washington Have Equitable Property Distribution?

Although Washington law embraces certain principles of equitable distribution, the state presumes that both spouses contributed to the obtaining of each asset. This means that judges do not consider each spouse's effort when determining what is fair and equitable.

Instead, they simply calculate the net worth of community property and give each spouse half through appropriate distributions.

For example, if one spouse's collection of cars acquired during the marriage jointly belongs to both spouses. Whether the other spouse contributed to their purchase or maintenance does not change this fact.

What Is Considered Separate Property in Washington?

Separate property, which is property acquired before the marriage, does not typically figure into distribution. It also encompasses gifts and inheritances received throughout the marriage. Each party retains ownership over their respective separate property.

A judge may include one spouse's separate property in the distribution for the sake of equity, but this is not too common.

What Is Considered Community Property in Washington?

Washington State is a community property state. This designation means that most property acquired separately or together during the years of a marriage is considered to belong to both spouses.

In Washington State, in particular, all community property is held jointly, regardless of who acquired it and whose name appears on the account or title.

How Is Property Valued?

Property is valued by various methods depending on the type of asset. Bank accounts have intrinsic face values. Other assets, such as houses and cars, do not have built-in price tags. These assets are instead evaluated based on the fair market value of each asset. Family law attorneys work diligently to ensure assets are properly valued.

How Is Community Property Divided in a Washington Divorce?

In Washington, the courts must accomplish the distribution of marital property (community property) in a just and equitable fashion. This does not automatically translate into a 50/50 split in all cases. Instead, judges take various factors into consideration to arrive at a fair property division.

How Do Judges Decide What's Fair When Dividing Property?

To reach a fair division of property, family law judges are required to consider various factors and circumstances about the marriage, including:

• The type and amount of community property.
• The type and amount of separate property.
• The length of the marriage.
• The individual economic circumstances of each spouse, post-divorce, and how that relates to children and assets such as the house.

If one spouse has engaged in bad behavior or misconduct, their actions, by law, can have no effect on the fair distribution of assets.

The age and health of the spouses may, however, be factored into determinations about the division of property. How each spouse's age or health affects their economic circumstances after the divorce is finalized is often relevant in divorces.

Ultimately, the courts in Washington are permitted to force the sale of community property to reach just results. However, they are often able to properly distribute marital community debts and property while selling few or no assets.

When it comes to debts, they typically assign them in a manner that ensures they will be paid. In other words, the courts in Washington will avoid overburdening a spouse with debt when possible.

Do You Get to Keep Your Separate Property in a Washington Divorce?

In many cases, spouses end up hanging on to their separate property. However, Washington law is unique in that it requires judges to consider both separate and community property when attempting to reach a proper distribution result.

In other words, if a judge decides that one party's separate property should be distributed for the sake of fairness, a spouse could lose a portion of that property.

Can Washington Couples Decide for Themselves How to Divide Their Property?

Yes. Washington couples are free to decide on how marital and separate property is to be divided during a divorce. Both parties must sign a written agreement to be submitted to the court. If the terms appear reasonably fair, the judge will typically approve the agreement.

Couples who come to an agreement before divorce proceedings have been initiated have the option of filing for an uncontested divorce. This type of divorce occurs when the parties agree on all terms of the divorce.

In an uncontested divorce, the courts are not involved, and some couples attempt the DIY route. However, couples are strongly advised to seek counsel when valuable assets are on the line, even when both spouses are in what appears to be full agreement.

What Happens to Your Debts?

Your debts acquired before marriage continue to be your own unless a judge determines them to be the responsibility of you and your spouse. Debts acquired during marriage are community debts and the responsibility of both parties. As such, the judge in your case will seek to apportion them equally between you and your spouse.

Property Division Checklist

1. Real Property

In Washington State, real property is defined as fixed property. Essentially, this category covers buildings and land.

For a divorcing couple, your real property may include any of the following:

• Your marital residence
• A vacation home
• Rental/investment property
• Property related to a business
• Land that is currently undeveloped

2. Financial Assets

After your real property, make sure that you document all of your financial assets. In effect, a financial asset is cash and any property held in an account that could be sold or converted to cash.

Some of the most common types of financial assets include:

• Cash
• Checking accounts
• Savings accounts
• Brokerage accounts
• Individual Retirement Accounts (IRAs)
• 401(k) accounts
• Other retirement assets
• Mutual funds
• Annuities
• Life insurance
• Trusts

3. Personal Possessions

Personal possessions are also subject to property division under Washington’s community property standards. Some possessions have tangible, clear financial value. Others have strong sentimental value.

Examples of personal possessions include:

• Motor vehicles
• Boats, RVs, and ATVs
• Home furnishings
• Appliances
• Antiques/artwork
• Computers and other electronics
• Clothing
• Collections
• All other personal property with tangible or sentimental value

4. Business Interests

Do you or your spouse own or control any business interests? If so, those business interests may be subject to property division in a divorce in Spokane.

Businesses that may be divided include:

• Sole proprietorships
• Partnerships
• Limited liability companies (LLCs)
• Corporations

5. Marital Liabilities (Debts)

Finally, a divorcing couple should carefully compile all of their debts. As debts are community property in Washington, any outstanding liabilities will also be addressed as part of the divorce process.

Some common debts include:

• Mortgages
• Car loans
• Credit card debt
• Medical debt
• Personal loans

Brandon and Leah Jenner Divorce Property Division Details

Brandon and Leah Jenner mutually divorced with a child and modest assets between them. The final agreement involved Brandon paying a total of $540,000 to Leah for the couple's Malibu home. Additionally, Brandon held on to three vehicles, and Leah kept one. Brandon also paid $2,000 in spousal support and the same in child support.

As a musical duo, the two made music and money, the latter of which appears in the form of royalties. The couple has decided to split these royalties between themselves and split up their collection of coins as well.

Get Help from an Experienced Divorce Lawyer in Spokane

At Hodgson Law Office, our Spokane divorce lawyers have deep experience handling complex property division cases. If you have any questions or concerns about dividing assets under Washington’s community property laws, we are more than ready to help.

Contact us now for a fully confidential case evaluation. With an office in Spokane, we represent people throughout Eastern Washington, including Spokane County, Lincoln County, Stevens County, and Whitman County.