Dividing Marital Property in a Washington Divorce

November 13, 2012 (Press-News.org) Dividing marital property in a Washington divorce

Every married couple accumulates assets and debts during the course of their life together. When a marriage ends, the divorce court is tasked with dividing that property between the two spouses.

Washington follows "community property" rules, meaning that courts consider nearly all assets and debts acquired during the marriage to be owned equally by both spouses. There are some exceptions to this general rule. For instance, inheritances received during the marriage are not included in this calculation. In addition, most assets and debts that were acquired before the marriage are considered nonmarital property and belong exclusively to the spouse who brought them into the marriage.

In property division cases, Washington courts will strive to divide the marital property equitably between both spouses. This doesn't necessarily mean that the property division will be exactly equal. Instead, the court will consider the nature of the property, the length of the marriage and each spouse's respective financial standing to determine a fair model for distribution.

Methods of property division

The division of marital property is nearly always a complicated process when the spouses are on unequal financial footing. However, it becomes even more contentious when the couple owns property that is difficult to divide, or difficult to characterize as either community or separate property. Further complicating the division of assets from a marriage are disputes as to the appropriate value to be assigned to such assets.

Some property is very easy to divide. For example, bank accounts, investment portfolios and debts can simply be distributed or reassigned according to the court order. Property division becomes more complicated, though, when the couple owns valuable non-financial assets. For example, what happens when both spouses want a particular valuable heirloom? What if they own a collection of "priceless" art? Or a large business enterprise? There can be other complicating valuation and characterization issues with respect to pension and retirement plans.

People in this situation would be wise to consult with an experienced Washington divorce attorney early on in their divorce case. The attorney will be able to assemble a team who can work with the other spouse's attorney to reach an equitable property division solution. In some cases, the court will award the sought-after property to one spouse and give the other spouse different property of equal value. In other cases, spouses might "buy" their partner's half. Another common solution is for the judge to order the couple to sell the property and split the proceeds.

However the property is divided, it is important for both spouses to understand the short- and long-term implications of the division. For example, if the property is expected to substantially increase in value, that should be accounted for in the division. In addition, the spouses should anticipate potential tax liabilities and factor those costs into the division as well.

If you are in the beginning stages of a divorce, thinking carefully about your property division goals now can help you be in a better position when your case is resolved. Decide what you want and what you are willing to give up. Then, be sure to communicate those goals to your divorce attorney.

Article provided by Cogdill Nichols Rein Wartelle Andrews
Visit us at www.cnrlaw.com