There are three ways to protect yourself financially during a divorce. The first is ensuring that child support is paid.  The second is requesting spousal maintenance if appropriate.  The third is conducting proper discovery to ensure that all assets are known and are fairly divided.

Child Support

Child support is a common source of concern during the divorce process, whether you’re expected to pay or receive it. Many parents worry about how to maintain financial stability and protect their financial future.

The mechanisms for paying and receiving child support are straightforward, and courts and the Division of Child Support (DCS) provide help if payments are not made.

Typically, the custodial parent receives child support, while the non-custodial parent does not, regardless of their financial situation. In cases of joint custody, one parent may still receive child support if there is a significant income disparity.

A judge can issue a temporary order for custody and child support shortly after a petition for dissolution is filed. This order remains in place until a final divorce decree is entered.

A motion for temporary support and supporting financial statements is required to initiate this process. The amount of child support is determined by Washington State Child Support Guidelines and considers the incomes of both parents.

Shield assets like retirement accounts and marital property to ensure financial protection during divorce. Consider opening a separate bank account to manage funds and creating an emergency fund for unexpected expenses. Shared bank accounts and joint accounts should be reviewed, and a financial advisor can provide investment advice to align with your financial goals.

Protecting assets like savings accounts, retirement assets, and marital estates is vital, particularly in equitable distribution or community property cases.

An experienced divorce attorney can help address complex financial issues like property division, tax implications, and beneficiary designations. Depending on the circumstances, separate property and assets accrued by one spouse before or during the marriage may be subject to division.

A good divorce attorney can advise on prenuptial agreements, irrevocable trusts, and ways to protect your marital estate. Whether you need guidance on shielding retirement assets, handling extracurricular activities for children, or managing financial risks, working with a professional tax attorney or estate planning attorney can help safeguard your future.

By carefully reviewing your financial plan, new accounts, and separate accounts, and understanding how court orders and agreements affect your financial landscape, you can take proactive steps to protect your financial future during and after divorce.

Maintenance

In Washington, spousal maintenance, also known as alimony, is awarded based on the “need and ability to pay” of each spouse. For one spouse to receive maintenance, they must demonstrate a documented need to cover monthly obligations, while the other spouse must show they have the financial capacity to provide support after considering their own expenses and income. Courts are skilled at identifying attempts to inflate expenses or exaggerate financial needs to manipulate maintenance awards.

Factors influencing spousal maintenance eligibility include:

• The length of the marriage
• The need for education or rehabilitation to secure meaningful employment, particularly for spouses who paused their careers to care for children or support the other spouse’s career
• Work history and earning capacity
• Health and medical needs
• The financial situation of both spouses, including future earning prospects, retirement accounts, and marital property
• The lifestyle maintained during the marriage, especially in long-term marriages

Every spousal maintenance case is unique. Providing your divorce attorney with comprehensive details about your finances, including financial statements, joint bank accounts, separate accounts, and retirement assets, helps build a strong case. Attorneys typically rely on financial declarations to present key information, such as your monthly income, expenses, and whether your spouse accrued additional assets during the marriage. This process may also involve reviewing marital property, community property, and separate property to ensure equitable distribution.

Your attorney will carefully calculate your spouse’s net monthly income and available funds in shared bank accounts, investment accounts, or savings accounts to determine their “ability to pay.” Similarly, they will assess your own financial needs, factoring in any emergency fund, education requirements, or ongoing medical expenses. If applicable, they may also evaluate the tax implications of spousal maintenance to protect your financial future.

Protecting assets such as retirement accounts, life insurance, and beneficiary designations is vital during the divorce process. A good divorce attorney can help ensure that marital assets and property subject to division are handled fairly while addressing complex financial concerns like property division and equitable distribution. They may recommend opening a separate bank account or new account to secure funds and prevent disputes with the other spouse over joint accounts.

By working with a professional attorney and possibly a financial advisor, you can develop a financial plan that safeguards your marital estate, addresses tax laws, and aligns with your long-term goals. Whether it involves managing retirement assets, shielding property, or ensuring fair property division, taking a strategic approach during the divorce process can protect your financial stability and future.

Discovery and Division of Assets

Washington law provides for a fair and equitable, but not necessarily equal, division of the property and debts acquired during your marriage.  Regardless of how a title is held, the court will use its discretion to divide the marital assets and debts.  In many cases, this may mean equal division, but as little as one-third of the assets awarded to one party and two-thirds to the other may still be considered “equitable.”  There are reported cases more extreme than this.

The court will consider a number of factors, including the current economic circumstances of you and your spouse and the length of the marriage.  The future earnings potential and the health of the respective spouses will be significant factors.

Generally, courts are more likely to employ a “50/50” split of the net asset value in short-term marriages or where the spouses’ incomes are similar.  They may begin to deviate from the “50/50” sharing in longer-term marriages where there is a significant difference in the earnings or economic outlook of the parties.

The greater this difference, the greater the potential for a court to deviate in favor of the financially disadvantaged spouse.

In order to get an appropriate division of the assets, you have to know what the assets actually are and what they are worth.  This is where discovery comes into play.  Discovery is often among the most important steps in a divorce to protect financial assets and receive an appropriate award.

The purpose of discovery is to ensure both you and your spouse have access to the same information on finances and assets.   Similarly, the judge must know all of the facts to make a fair decision.

Through a variety of methods, attorneys will request information from your spouse and potential witnesses in your case.  Types of discovery include:

• Interrogatories, which are written questions that must be answered under oath.
• Requests for production of documents, which asks for certain documents to be provided by you or your spouse.
• Requests for admissions, which asks certain for facts to be admitted or denied.
• Subpoena of documents.
• Depositions in which questions are asked and answered under oath in the presence of a court reporter, but outside the presence of a judge.

Discovery can take anywhere from a few weeks to a number of months, depending upon the complexity of the case, the cooperation of you and your spouse, and whether expert witnesses are involved. The discovery process can be critical to a successful outcome in your case for several reasons:

• It increases the likelihood that any agreements reached are based on accurate information
• It provides necessary information for deciding whether to settle or proceed to trial
• It supports the preparation of defenses by providing information regarding your spouse’s care.
• It avoids surprises at trial, such as unexpected witness testimony.
• It ensures all potential issues are identified by your attorney.

By applying all of the above information, a spouse can best protect all of their financial interests. If you have any questions about divorce in Washington, contact our family law attorneys at Crouse Erickson today.