How to Handle Divorce When Both Spouses Own Property in Multiple States

The ending of your marriage or long-term relationship is understandably upsetting and destabilizing. Even if you and your spouse believe that obtaining a divorce is the best option for you both to move forward, the process of untangling your lives from one another can be arduous and emotionally draining. It’s natural to experience feelings of sadness, loss, anger, frustration, and anxiety as you mourn this significant chapter of your lives. Navigating the divorce process can affect your physical health as well, as “Divorce activates a prolonged stress response that can wear on the body and mind. In the short term, stress activates the body’s fight-or-flight system, releasing hormones that speed up the heart rate, increase blood pressure and tighten muscles.” Those who spend weeks or months in this state of agitation and stress can experience complications like inflammation, high blood pressure, and other health risks. Additionally, the impact of divorce on mental health can be considerable, with symptoms of depression, anxiety, and loneliness potentially arising and complicating an already difficult time.

However, the stressful aspects of the divorce process can be mitigated by enlisting the guidance and support of a highly qualified and empathetic Seattle divorce and family law attorney. With a knowledgeable legal advocate by your side, you can better understand the steps of the divorce process and rely on personalized responses to your questions along the way. Those who work with a skilled and trusted Seattle divorce lawyer often feel more empowered to move through the process with greater understanding and ease. Together, you and your dedicated legal advocate can address nuanced matters like how to divide out-of-state assets in divorce in a fair and equitable manner. This post will explore some tips for handling a high asset divorce with multiple properties in Washington state and how seeking the support of an experienced Seattle family law attorney can help you achieve a favorable outcome. 

Dividing Property in a Washington State Divorce

Washington state is among several other states that recognize the “community property” model that governs the division of marital property during a divorce. Under RCW 26.16.030, any property that is “acquired after marriage or after registration of a state registered domestic partnership by either domestic partner or either husband or wife or both, is community property.” In other words, assets that either spouse receives, purchases, or owns during the marriage belongs to both parties. For instance, the income of one spouse and the vehicle of the other spouse that was purchased during the marriage are both considered community property (i.e., both spouses have a legal right to these assets). When the couple moves through the divorce process in Washington state, they will need to divide up the property in a way that is considered to be “just and equitable” (RCW 26.09.080). It’s worth noting that “just and equitable” does not automatically mean an even fifty-fifty split. Instead, the divorcing couple must negotiate a division of property that allows them to walk away from the marriage on relatively similar financial footing. When you meet with your highly skilled Seattle divorce lawyer, you can learn more about how Washington’s community property laws will affect the upcoming asset division negotiations. 

Multi-State Property and Divorce in King County

High-net-worth couples often require specialized legal guidance when moving through the divorce or legal separation process, as their assets tend to be more varied, complex, and considerable. For instance, if you and your spouse have built your real estate portfolio by acquiring properties in other states, there are several decisions you will need to make and implications to consider as you proceed with the divorce. Since not every state follows a community property system, the state in which the real estate property is located will affect how this asset is dealt with during the property division process. Below is a brief overview of how various state laws may affect these negotiations as you approach property division negotiations in Washington state.

When You Move to Washington From a Common Law State

So-called “common law” states differ from community property states in a few ways, particularly when it comes to real estate ownership matters. In a common law state, any property that is purchased by only one spouse is generally considered their sole property. In contrast, community property states like Washington view any property purchased by either spouse during the duration of the marriage as belonging to both spouses–even if only one spouse’s name appears on the title. So, what happens when you and your spouse move from a common law state to Washington and retain a property in the common law state? In most cases, the Washington court will view the property that was purchased in the common law state as under the jurisdiction of that state. This means that the property that is in one party’s name in the other state will be considered their separate property, even if it would have been considered community property in Washington.

Adding Your Name to the Deed or Creating a Postnuptial Agreement

If you own property in a state that follows a common law system and only your spouse’s name is on the deed, the court may view this asset as separate property belonging only to your spouse. However, if you and your spouse took the time to add both of your names to the deed or put a postnuptial agreement in place to clarify that the real estate property belongs to you both, then the property may be handled according to Washington’s community property law. To learn more about how legal documents like postnuptial agreements can affect property division negotiations in Washington state, reach out to a highly qualified and caring Seattle divorce attorney today.

What to Expect During Property Division Negotiations in the Greater Seattle Area

Since couples with significant and complex assets have additional considerations to address during the divorce process, these cases tend to proceed more slowly and involve a few extra steps before the divorce is finalized. If your divorce involves multiple real estate properties or a property that is located in a different state, it’s helpful to familiarize yourself with the upcoming steps that will need to be taken as you move forward. Here are some of the key steps for handling a multi-state divorce with greater clarity and confidence.

Address and Establish Jurisdiction

First, the Washington court may issue an order for the division of all assets under its jurisdiction, including properties that are located outside of Washington. This means that the court can require both spouses to participate in the proceedings, even if one spouse has property in another state.

Make a List of All Assets and Have Them Appraised

One of the most time-consuming tasks of the divorce process is identifying every asset and creating a full inventory of the property, bank account balances, financial assets, retirement accounts, cars, and other valuables you and your spouse own. As you compile this list, you will need to distinguish between assets that are considered community property (i.e., you acquired them during the marriage) and separate assets (i.e., you owned them before you married or you inherited them at some point). Next, you will need to have each asset appraised to determine its value so that you can use the information to engage in productive negotiations regarding an equitable distribution of your assets.

Negotiate an Equitable Distribution of Your Assets, If Possible

If you and your spouse are able to engage in open, honest, and respectful negotiations, you can move through the property division process with minimal supervision. However, having your own attorneys is highly recommended to ensure that both parties emerge from these negotiations with a fair compromise in place. Should you encounter disagreements or hostile arguments that cannot be resolved through further discussion, you may find that taking these negotiations to mediation, arbitration, or even litigation is the best way to secure a resolution. 

Understand Your Legal Rights 

Although you may be tempted to rush through the divorce process so that you can start enjoying your life’s next chapter, moving too quickly can deprive you of a fair divorce agreement or settlement. For many people, seeking the support of a trusted and compassionate Seattle divorce attorney provides them with the reassurance and confidence they need to weather these difficult conversations with greater ease. Knowing that you have a skilled legal advocate who is ready to protect your best interests at every opportunity can give you the security you need to face the future with greater optimism. 

Get Started With Seattle’s Top Divorce and Family Law Firm Today

If the prospect of moving through the divorce process in Washington state seems stressful and daunting, you can enlist the guidance of a highly experienced and caring Seattle family law and divorce attorney who can provide you with the customized support you need during this challenging time. Reach out to Seattle’s top divorce attorneys today by calling the Hemmat Law Group at (206) 682-5200 to learn more about your options.