How Are Debts Handled During Divorce Proceedings in King County?

If you are in the initial stages of the divorce process, or if you are just beginning to explore your options for ending your marriage, it’s natural to feel somewhat overwhelmed and anxious about this prospect. Ending this chapter of your life, whether it has lasted for several decades or only a few months, can be emotional and challenging to navigate. Even if you and your spouse have decided to part on friendly terms and you know that you will be happier once the divorce is finalized, you may still experience feelings of grief as you mourn the end of your romantic partnership. Leaning on trusted friends and family members for support during this transition can help you make informed decisions that will set you up for a stable and successful future once the marriage ends. As you move through each phase of the divorce process, it’s important to approach each topic and task with your full attention to ensure that you obtain a fair and favorable outcome. 

The division of assets is one of the most time-consuming aspects of the divorce process in Washington State. Although most people recognize that they will need to negotiate an equitable distribution of property as part of their divorce proceedings, others may not realize that they will also have to address the issue of debts and how to divide these remaining debt obligations in an equitable manner. Debt continues to play a significant role in the lives of many Americans; as of the beginning of 2024, household debt in the United States reached an all-time high of $17.3 trillion, according to recent estimates. If you are affected by debt, you are far from alone. Addressing debt will be an important component of the divorce process as you and your spouse work to establish a fair division of property and debt that allows you to move forward on a relatively even footing. Enlisting the guidance of a highly qualified and caring Seattle divorce attorney is a great strategy to ensure that your best interests remain protected at every opportunity. This post will explore how debt is typically handled during the Washington divorce process and some of the strategies you can use to lay the foundation for a bright and secure post-divorce future.

How Washington State Handles Assets and Debts in Divorce

First, it’s important to understand how Washington typically addresses the division of property during the divorce process. Like several other states, Washington is considered a “community property” state. Essentially, this means that any property or assets that are acquired by either spouse during the course of the marriage belong to both parties—even if the asset only lists one spouse’s name on the title. For example, the salary of one spouse is considered community property, even if the other spouse did not work outside of the home during the course of the marriage. When this couple moves through the divorce process, the lower-earning spouse is entitled to some of the money earned by the other party, as this financial resource is considered community property. It’s important to recognize that some assets may be classified as separate property, which means that the asset belongs to one spouse only (i.e., you received an inheritance from a relative before you entered into the marriage). However, spouses who lived together before they got married may have a more challenging time distinguishing between community and separate assets. These discussions can quickly become nuanced and complex, so it’s best to discuss your unique situation with a trusted and experienced Seattle divorce lawyer for more customized guidance.

Addressing Marital Debt in Divorce

As a community property state, Washington considers any assets and debts acquired during the marriage as the equal responsibility of both parties—regardless of which spouse actually accumulated the debt or acquired the assets. However, just because marital assets and debts are the equal responsibility of both spouses does not automatically mean that the court will divide everything down the middle in an exact fifty-fifty split during the divorce proceedings. Instead, the court will rely on a variety of factors to arrive at a distribution of property and debt obligations that allows both parties to part ways on relatively even footing while having the means to maintain a standard of living that is similar to the one enjoyed during the course of the marriage. As you approach the negotiation of property and debt division, it’s important to understand that you may still be held responsible for debt incurred by your spouse, even after the marriage officially ends. For instance, you may be responsible for a big-ticket item that your ex charged to your joint credit card, even if you were unaware of this purchase. Your experienced King County divorce attorney can provide you with the personalized legal counsel you need to make more informed decisions during this process. 

Reminders About Debts During Divorce in Washington State

There are several forms of debt, and it’s important to recognize that they may be addressed in slightly different ways during the divorce process. For example, outstanding loan obligations usually remain unaffected by the divorce. Divorce itself does not automatically change the terms of any financial agreements you already have with outside parties. Since creditors are only obligated to abide by the conditions as they appear on the initial agreements, you and your spouse will still be responsible for these payments—even when the divorce is finalized. This distinction is critical since your ex’s behavior can still affect you long after the marriage ends. For instance, if the terms of your divorce allow your ex to keep the house and they fall behind on the mortgage payments, you can be affected by their actions because your name may still be on the paperwork. It’s essential that you discuss the details of your divorce agreement with your attorney so you fully understand the potential impact of your ex’s actions, even after the marriage ends. 

What About Your Ex’s Debts and Divorce?

Many people wonder about debts that their ex brought with them into the marriage. Do these “preexisting” debts automatically become the responsibility of both spouses? Under RCW 26.16.200, “Neither person in a marriage or state registered domestic partnership is liable for the debts or liabilities of the other incurred before marriage or state registered domestic partnership, nor for the separate debts of each other.” In other words, you do not assume responsibility for your ex-spouse’s financial obligations that existed before the marriage. Essentially, this means that you will not be responsible for repaying their old student loan obligations that were accrued before the marriage, nor will you be held responsible for repaying credit card bills that your ex had racked up before your marriage. For the most part, Washington considers marital debt (as in, debt obligations incurred during the course of the marriage) to be the responsibility of both parties, while any separate debt that existed before the marriage will remain the sole responsibility of the spouse who initially incurred the debt. 

Preparing For Debt Division in Divorce

If you are beginning to explore your options for ending your marriage in Washington, you may want to consider refinancing any loans you have. You can even consider including this language in your divorce agreement to ensure that the owner of a particular debt accomplishes this task by a clear deadline to protect both parties from future headaches. In many cases, the debts that happen after a separation but before the final divorce documents are signed are the most complex to address. As you begin to move through the divorce process, you can protect your best interests by enlisting the guidance and expertise of a highly experienced Seattle divorce attorney who will examine every detail and help you identify the most strategic path forward to keep your future as bright and stable as possible. 

Questions? We’ve Got Answers

Divorce is a tough transition for everyone, even if they know that walking away from the marriage is their best option. The mental energy required to make weighty decisions that carry significant implications can be difficult to maintain, which is why it’s important to identify sources of support to assist you during this process. When you partner with a seasoned and compassionate Seattle divorce and family law attorney, you can rest assured that your future will unfold as brightly as possible. Your attorney will remain by your side during every phase of the legal process, answering your questions and addressing your concerns as they arise. As overwhelmed as you may feel right now, it’s essential to recognize that this transition is only temporary. Together, you and your attorney will lay the groundwork for a solid and stable post-divorce life so you can move forward into the next chapter of your life that awaits you.

If you are looking for a Seattle divorce attorney who will prioritize your needs during this challenging time, the dedicated legal team at the Hemmat Law Group is ready to assist you. We encourage you to call our office today at (206) 682-5200 to get started with a knowledgeable and caring divorce and family law attorney.