Embarking on a high-asset divorce when you’re a low- or non-earning spouse can be daunting. You’ve lived a particular lifestyle and enjoyed a sense of financial security, but now you may be concerned that all of that will go away after your divorce. Fortunately, Washington state law protects low- or non-earning spouses involved in a high-asset divorce in many instances. Here’s what you need to know.
Understanding Asset Division in a High-Asset Divorce
Asset division in Washington state involves several issues: what assets are community property versus separate property, length of the marriage, the economic circumstances of the parties, and how courts determine fair asset division so you can protect your share of marital wealth.
Community Property vs. Separate Property in Washington State
Washington state follows community property laws. This means most assets and debts acquired during a marriage belong equally to both spouses, regardless of whose name is on a title, paycheck, or account. However, there are exceptions.
Separate property typically includes assets one spouse owned before marriage, property acquired after separation, assets acquired with separate funds, and gifts or inheritances received individually. However, the court may treat separate assets the same as community property if they become commingled with community assets, such as when one spouse receives an inheritance and deposits it into the couple’s joint account. Similarly, both spouses are generally equally responsible for debts incurred during the marriage unless a court order says otherwise.
How Washington Courts Decide Asset Division to Create Fairness
While community property suggests an even split, Washington courts focus on what’s fair rather than strictly dividing everything 50/50. Judges consider factors such as the length of the marriage, each spouse’s financial situation, and parenting responsibilities.
Washington courts also consider separate property when deciding asset division. For example, if one spouse has significantly more individual assets, the other may receive a larger share of the couple’s community property.
Courts also weigh each spouse’s contributions to the marriage, such as one spouse’s role as a stay-at-home parent who, by caring for the household, helped the other to build wealth. Ultimately, Washington law prioritizes equitable, not necessarily equal, asset division so that both spouses can leave the marriage with stable financial footing.
Spousal Support in Washington State: What You May Be Entitled to as a Low- or Non-Earning Spouse
In a Washington state high-asset divorce, the high-earning spouse may be required to pay the low- or non-earning spousal maintenance in addition to the financially disadvantaged spouse receiving a greater percentage of the assets.
How Washington Courts Calculate Alimony
In Washington, spousal maintenance isn’t based on a strict formula like child support. Instead, courts take a case-by-case approach, aiming for fairness based on the unique circumstances of each marriage.
Judges consider factors such as the financial needs and resources of both spouses, the length of the marriage, and the standard of living established during the marriage. While some believe spousal maintenance is a punishment, Washington law sees it as a way to create equitable financial division.
Fault, such as infidelity or “bad” behavior, is not a factor in determining maintenance. However, financial harm caused by one spouse (e.g., waste of marital assets or money resulting from excessive gambling or misuse of marital funds) would be relevant.
Temporary vs. Long-Term Support
Spousal maintenance can be awarded for different periods, depending on the needs of the low- or non-earning spouse and the couple’s overall financial situation. Temporary maintenance is ordered while the divorce is ongoing. Its goal is to help maintain the status quo until final decisions are made. Temporary support ends once the divorce is finalized, though in some cases, it transitions into a long-term arrangement.
Post-decree maintenance depends largely on the length of the marriage. Short-term marriages (under five years) rarely result in long-term support, as courts aim to restore each spouse to their financial state before marriage. In essence, in short-term marriages, the court’s focus is to look backward to the position of the parties at marriage.
In long-term marriages (25+ years), the goal is often to place both spouses on equal financial footing going forward, which may mean issuing ongoing support or a larger share of marital assets to offset it. Most divorces fall in between, requiring a careful balancing act to determine the amount and duration of support.
Factors that Could Impact Spousal Maintenance Awards
When making alimony awards, Washington courts weigh several factors:
- Financial Resources: The court will look at the receiving spouse’s ability to support themselves, including from any assets awarded in the divorce.
- Employment Prospects: If the low- or non-earning spouse must re-enter the workforce to be able to support themselves, the court will consider how long it will take to gain the necessary education or training.
- Standard of Living: The lifestyle maintained during the marriage will play a role in determining spousal maintenance. However, courts will balance this against the financial realities of both spouses after the divorce.
- Health and Age: Older or less healthy spouses may receive more support due to their limited earning potential.
- Paying Spouse’s Ability to Pay: The court will ensure that the higher-earning spouse can meet their financial obligations while providing support.
Spousal maintenance can be modified under certain circumstances but typically ends with the receiving spouse’s remarriage or death. Given the complexity of spousal maintenance determinations, working with an experienced Seattle family law attorney can help you secure a fair outcome.
Common Challenges in High-Asset Divorce When You’re a Low- or Non-Earning Spouse and How to Overcome Them
During a high-asset divorce, it’s important to be forthcoming with as much information as possible. As a low- or non-earning spouse, you may not have access to all the information you need, including account numbers and balances.
That’s OK; informing your family law attorney about what’s missing can be just as beneficial. They will request missing documents during the discovery stage of your divorce and, if the situation calls for it, will involve a forensic accountant to help put the puzzle pieces together as well as value assets such as a family business, goodwill in a professional practice (such as that in a dental or medical practice), deferred compensation, and anything else needing valuation.
Sometimes, a high-earning spouse involved in a high-asset divorce will be reluctant to disclose information they rightly have to, maybe even going so far as to hide assets or debts. This only delays the inevitable, as they cannot evade discovery. Though dealing with a financially dominant spouse can be frustrating, it’s best to keep communications in writing and document all conversations, noting the date, time, what was discussed, and any witnesses to them.
How to Create a Secure Financial Future Post-Divorce
Understanding your lifestyle during your marriage is yet another integral part of a high-asset divorce as a low- or non-earning spouse. Even if you don’t understand your financial picture clearly (yet), you can help by detailing your and your children’s pre-divorce lifestyle for your family law attorney. How much you spend on groceries, gas, manicures, and your children’s extracurricular activities and summer camp, for example, will be important in calculating spousal maintenance and child support, so be specific.
The budget you create during this stage will also help you plan your post-divorce life. It’s important to understand it is unlikely you will be able to enjoy every luxury you had while married. But knowing where your money has been going can help you budget moving forward, including deciding between a need and a want. When you see what you have and areas where you could improve, you can set realistic and attainable goals for rebuilding or strengthening your finances to become financially independent one day.
Finding a Strong Seattle Family Law Attorney to Support You as a Low or Non-Earning Spouse During a High-Asset Divorce
As a low- or non-earning spouse involved in a high-asset divorce in Washington, it’s wise to have a strong Seattle family lawyer supporting you. Not only will a skilled and experienced high-asset divorce lawyer know how to protect what should rightfully be yours, but they will also have a team of financial professionals, such as forensic accountants and financial planners, to add to your divorce support team. At Elise Buie Family Law, our team of Seattle divorce lawyers recognizes the importance of having skilled divorce professionals at your side. We also understand the need for emotional support and self-care during the divorce process, particularly in a high-asset divorce involving complex financial issues. We are here to guide you every step of the way, providing you with legal resources and the guidance you need to build a strong financial future. Call us today or schedule a time to speak.
