How to Legally Separate Finances Before Your Divorce is Final in King or Pierce County

The divorce process is a considerable undertaking, even for those who are on the same page about ending the marriage and moving through the process on amicable terms. Whether you have been married for a handful of years or your marriage has endured several decades, untangling your lives from one another requires careful consideration and substantial focus. The energy that is necessary to ensure that the terms of the divorce are fair and equitable can be difficult to summon during this challenging time, as you are also grappling with powerful emotions such as loss, sadness, anger, frustration, depression, and grief. If you have children, you are likely wondering how the divorce will affect their well-being, which can add additional stress to this already trying process. With all these decisions weighing heavily on you during the divorce process, making sure that you are protecting yourself financially can be particularly tricky. Even spouses who are moving through the divorce process on relatively friendly terms can encounter disagreements and disputes about separating finances during divorce. 

As tired and overwhelmed as you may feel right now, it’s important to recognise that you do not have to move through this daunting process on your own. When you enlist the guidance and support of a highly experienced and dedicated Seattle divorce and family law attorney, you can rely on their expertise to advocate for and protect your best interests at every opportunity. Together, you can make sure that you are managing money during a divorce in such a way that sets you up for a secure and bright future. Let’s take a closer look at some tips for financial planning before a divorce is final in Washington state, and how hiring a skilled and caring Seattle divorce lawyer can maximise your chances of enjoying the solid financial foundation you need to move forward into the next chapter of your life. 

Understanding Temporary Financial Orders in Divorce Cases

In cases where both spouses agree that seeking a divorce is their best option, the parties are usually able to work together to negotiate the terms of the divorce. In other divorce cases, one spouse may feel completely overwhelmed by the prospect of ending the marriage, especially if they have relied on their spouse for steady income. For instance, the spouse who gave up a career in order to raise children or maintain the home will likely be concerned about how the divorce will affect their financial security. Washington laws allow either party to file a petition for a temporary order to ensure that they receive the support they need to move through the legal process and transition to their new financial reality. When the court issues a temporary financial order, you can secure immediate financial relief. This is vital for those who do not control the family finances, as the temporary order ensures that you receive the spousal maintenance you (and your children) need to adjust to your new situation once the marriage ends. If you are interested in learning more about how temporary orders can help you navigate the Washington divorce process with greater support, consider discussing your needs and goals with a highly skilled and compassionate Seattle divorce attorney today. 

Divorce and Joint Accounts in Washington State

When it comes to dividing shared assets during the Washington divorce process, there are strategies you can use and risks that are worth noting so that you can avoid costly mistakes and heated disagreements later on. First, it’s worth noting that Washington is what’s known as a community property state, which means that any property that is acquired by either spouse during the course of the marriage is considered the property of both spouses. In other words, your spouse’s income is generally considered your property as well, even though you were not the spouse who actually brought home this pay. When the time comes to separate your shared property during the Seattle divorce process, you and your spouse will need to determine how to divide up the property in a just and equitable manner, which does not automatically mean an even fifty-fifty split. Rather, you will need to negotiate a fair distribution of your property in such a way that allows you to walk away from the marriage on relatively similar financial footing. While it may be tempting to start moving money around as soon as the word “divorce’ comes up, you should be aware of the risks of acting too hastily. Below are just a few of the allowed actions, as well as a few of the riskier actions that can lead to costly consequences.

Financial Strategies 

Generally speaking, Washington allows couples to keep their income in separate accounts in order to keep separate property more identifiable. If you have done any of the following over the course of the marriage, it may be easier to distinguish between separate and joint property during the divorce process.

• Depositing any gifts or inheritances you received before or during the marriage into a separate account to make it clear that these funds are considered separate property
• Depositing your individual income into a separate bank account 
• Using separate funds for expenses and investments that are intended to be your own

Potential Risks

While some couples are able to keep their finances fairly separate during the course of the marriage, many others end up commingling funds and sharing their assets. When the marriage ends, it will be trickier to untangle separate property, as the joint bank accounts and shared investments will typically be considered community property under Washington law. Here are some of the risks and complications that can arise when addressing financial matters during the divorce process:

• Making significant withdrawals just before the divorce begins can create serious complications and lead to contentious legal disputes
• Lacking clear documentation that identifies separate property can make it difficult to keep these assets from being considered community property
• Hiding money from your soon-to-be ex-spouse can undermine the trust and honesty needed to move through the divorce process productively and successfully

To learn more about separating finances during divorce in Washington state, you can seek the guidance of a trusted and knowledgeable Seattle divorce and family law attorney when it’s most convenient for you. 

Paying Joint Bills and Managing Shared Debt During Divorce

If you are able to communicate openly and productively with your spouse during this time, you can work out a payment plan that addresses how joint bills and shared debt obligations will be handled during the divorce process. In cases where effective communication is not possible, you can work with your attorney to seek a temporary order that addresses these matters and ensures that your financial obligations continue to be covered during this transitional time. Many divorcing couples find that setting up automatic payments is a helpful way to keep on top of these bills, especially as it can be easy to lose track of these obligations in the shuffle of the divorce process. As you move through the legal process, try to keep clear records of your financial activities to ensure that you are both sharing responsibility for the costs associated with untangling your lives from one another before you can move forward into the next phases of your independent lives.

Protecting Credit and Tracking Expenses

Sometimes, an ex will make irresponsible financial decisions during the divorce process, which can significantly affect your credit score and financial security. It’s often a strategic move to open a separate bank account and a new line of credit as soon as you make the decision to end the marriage. Closing joint accounts or removing your ex from your credit account can protect you from their poor or risky financial actions during this vulnerable time. If your ex makes an irresponsible financial decision that affects your credit or finances, be sure to track these events and share them with your skilled Seattle divorce lawyer to determine the most strategic way to handle them. 

Learn More About Protecting Your Finances During a Divorce in Washington State

It’s common to feel overwhelmed during the divorce process. If you feel as though you are faced with a constant stream of monumental decisions every day, you are not alone. It’s important to take some time to identify sources of support who can help you stay afloat during this period of instability and transition, such as loved ones, therapists, and trusted legal advocates. With a knowledgeable and empathetic Seattle divorce attorney by your side, you can trust that your best interests and well-being will be prioritised at every step of the legal process so that you can move forward into a bright and secure future. 

If you are looking for legal guidance that is tailored to suit your unique needs and goals, the highly qualified and caring team of divorce and family law attorneys at the Hemmat Law Group are more than ready to assist you. We believe in collaborating with every client we serve so that you can take an active role in the legal process and make more informed decisions with greater certainty and confidence. We encourage you to reach out to our Seattle, Washington office today at (206) 682-5200 to get started with a dedicated and trusted divorce and family law attorney.