Seattle Division of Property Attorney
The process of dividing property and assets can be stressful and confusing if you’re in the middle of a divorce or legal separation case. Various factors come into play before a court divides property between divorcing spouses. For this reason, it is always advisable to hire a Seattle division of property attorney who is familiar with the process.
The state of Washington classifies the property of a married person as either community property or separate property. Community property means that the assets and debts acquired during marriage before separation are divided equally between a separating or divorcing couple. On the other hand, separate property refers to property and assets acquired by either spouse before or after marriage.
What Is Community Property?
Division of assets in a divorce includes community property, which is defined in RCW 26.16.030 as:
- Assets or property that you accumulate during marriage
- Property that belongs to both spouses
Gifts to one spouse, such as a gift from a spouse’s parent to their child, are classified as separate property.
Spouses can determine if property is classified as “community” if it was:
- Obtained with “community funds”
- Purchased during marriage
Community assets can include:
- Income
- Interest on investments during the marriage
- Capital gains
- Retirement benefits
- Automobiles, boats, etc.
- Marital home
- Rental properties
- Furniture
- Second homes
- Vested and unvested stock options
Any income acquired, savings and retirement accounts funded during the marriage are all part of community property. Debt also falls under this classification, meaning if you have a mortgage on your home or credit card debt, both spouses are responsible for its repayment because it is considered community debt.
Stock options are often confused as separate property, and division may be up to the court. For example:
- Unexercised options may be community, depending on when they were received, even if they’re not vested.
- Restricted stock units (RSUs) are martial if they’re vested or granted during the marriage
Unvested RSUs are far more complex because there’s a time-value delay that must be considered. The courts will decide on these values on a case-by-case basis.
Community property is divided fairly and equitably among both spouses, depending on other factors. Sometimes this may mean an equal division, sometimes, it may not.
ZafiroLaw can negotiate a divorce settlement that is fair for both parties. You may want to keep your marital home, and if you’re willing to give up your rights to other assets, we can often negotiate this for you.
Call us to discuss your divorce and learn how we can help you with the division of assets.
What Is Separate Property?
Separate property is the opposite of community property: you obtained it before marriage or after the date of separation,– with some exceptions. If your spouse was gifted an asset during the marriage, it is separate property. Imagine that a gifted asset was sold, and the proceeds were then used to help with the downpayment of your home. In this case, this could be deemed community property.
Assets that are separate are owned by one person or were owned prior to marriage.
- Contributions to a retirement account before marriage
- Real estate or property owned by a single spouse before marriage, such as a family home that has been passed down for generations
- Assets listed in a prenuptial agreement
- Bank accounts owned prior to the marriage
What happens if commingling occurs during marriage? In this case, the asset may change from separate to community property. Imagine that Jeff and Allison are married, and Allison was making payments on a car that she owned prior to the marriage.
Jeff decides to use funds from a joint bank account to pay off Allison’s car loan.
In this scenario, the car is now marital property, at least to some degree. Depending on the amount paid off, all or a portion of the vehicle may be marital property.
Jewelry can be either separate or community property, depending on when it was obtained. Engagement rings are separate because the marriage is yet to take place and it was gifted by one to the other, but if a bracelet was purchased after marriage, it is community property.
How Is Property Divided in Washington State?
There are several steps involved in the division of property in the state of Washington. They include:
Classification of Property and Assets
The court will need to classify each property and asset as either community or separate property. The problem usually arises if one spouse wants to protect their separate property, while the other spouse wants the property classified as community property. Again, a Seattle division of property attorney will help secure your best interests in the disposition of such property.
Valuation of Property and Assets
This is one of the most contentious issues in a divorce or separation case. For instance, suppose you and your spouse can’t agree on the value of property and assets jointly owned. In that case, it’s best to hire a financial expert or forensic accountant to determine the value of each property and asset classified as community property.
There are instances where the sale of the property is the best way to determine its value if you or your spouse don’t agree with the forensic valuation of the property. But, if one party doesn’t want to sell the property, the court may intervene to review the forensic valuation report and make a final decision. This mostly happens when both spouses decide to hire their own forensic experts and the experts’ reports conflict with each other.
Division of Property and Assets
In Washington, the law requires a just and equitable division of property. But this does not mean that the property and assets will be divided equally among the separating couple. In other words, the court has to fairly determine the case with all factors considered.
In some cases, the court awards the spouse with less income a bigger share of the property to sustain themselves after the marriage. This may even mean awarding the spouse with less income some separate property belonging to the other spouse. However, beware that the court won’t consider any marital fault when dividing properties and assets between spouses.
What Factors Are Considered in the Division of Property?
The following factors may be considered by the court when dividing property:
- Type and nature of community property
- Type and nature of the separate property
- How long the marriage lasted
- The income status of each spouse at the time of the separation or divorce case
There are rare circumstances where the court decides to award both parties the joint maintenance of assets and debts. It can also choose not to divide all property and assets but instead provide rules that determine how to divide the properties in a given timeline.
How Can I Protect My Assets in a Divorce?
In Washington, the division of assets in a divorce must be fair and equitable. However, there are a few ways to protect assets in case of a divorce.
Prenuptial Agreements
A prenuptial agreement is a contract that outlines how property will be divided in case of a divorce. It can serve as an effective tool for protecting certain assets, but it must be signed prior to marriage.
Prenups must be in writing and signed in the presence of a public notary.
If you signed a prenuptial agreement, your assets may be protected, although these agreements are not always ironclad.
Postnuptial Agreements
Just as the name suggests, a postnuptial agreement is signed after you’re already married. It can be used much like a prenuptial agreement to outline the division of assets in case of a divorce.
Trusts
Although it’s more complex, a trust is another option to protect assets in a divorce. In this case, however, you would transfer legal ownership of the asset to the trust.
A trust is not the right choice for every client, and there are many legal concerns that must be considered.
How Can an Attorney Help You with Fair Asset Distribution?
The division of assets in a divorce can be complex and emotionally charged. Because Washington is a community property state, the division of property must be “just and equitable.” Equitable doesn’t necessarily mean equal.
One spouse may receive a bigger property award because they have less ability to earn in the future. Although not common, the court may award separate property to the other spouse if they deem it “just and equitable.”
But what is fair?
Determining the value of property and assets can be challenging without the help of appraisers and other experts.
A Washington division of assets lawyer can help you:
- Assess and characterize each asset and debt as community or separate property
- Determine which assets should be appraised
- Connect with experienced appraisers to value your property
Your lawyer will also negotiate and advocate on your behalf to ensure fair asset distribution in your divorce.
How A Seattle Division of Property Attorney Can Help In Cases Involving Division of Property & Assets
Divorce is complicated. The division of assets in a divorce is even more complicated. Hiring the right lawyer is critical.
The lawyers at ZafiroLaw have extensive experience handling complex cases of property division in a divorce. We will advocate on your behalf to ensure your assets are distributed fairly.
We understand that divorce is a life-changing, emotional event. Our compassionate team provides an unmatched level of service to clients and is here to help guide you through the process.
Contact ZafiroLaw today at 206-547-9906 or contact us online to schedule a consultation. We serve Seattle, Bellevue, Renton, Kent, Kirkland, Redmond, and the entire Snohomish County.
