High Asset Divorce

High-asset divorces are those involving at least $1 million in combined assets, excluding enterprises and real estate. Many couples in Washington have estates worth over a million dollars if you include their principal residence, but it is less common for a couple to have liquid assets worth at least seven figures. Ownership of assets can be more complicated when it comes to high asset individuals, as they usually have multiple sources of wealth or assets. A specialist high asset divorce lawyer can be invaluable to work through the specifics of the unique financial circumstances involved when going through this kind of divorce or separation.

Individuals can end a marriage on their own without requiring legal assistance, but even with a collaborative approach and a relatively straight-forward asset portfolio, divorces can get complicated in a hurry, and some mistakes are only apparent years after the fact.

For a high net worth couple going through a high asset divorce, we would highly recommend using a lawyer to help navigate the complexity involved. Particularly because the task of asset distribution can require specialist knowledge and arduous paperwork.

Washington is a “No-Fault” divorce state, so if one spouse wants a divorce, they will get one, regardless of the other party’s opinion. In the same vein, the court does not ask why the relationship is ending.

Washington has a minimum 90 day waiting period before the courts can grant a divorce by law, so if you are seeking a faster timeframe, your best shot would be to seek a legal separation. This is similar to a divorce, but if the parties fully agree on the terms of divorce, it can be granted by the courts immediately – no waiting period.

Generally, high-asset divorces do take longer than normal divorce proceedings. There is extra time required to locate and divide all marital assets, particularly if there are complex portfolios or earning structures. It is not uncommon to have multiple accounts, investments, property, cryptocurrencies, and assets across the country or even internationally distributed. To account for all the assets and calculate their value is a time-consuming process, but a high-asset divorce lawyer can help you through this. It is something worth taking time over, and shouldn’t be rushed.

Typically, a high-asset divorce is more expensive than an average divorce. It requires more time and resource (and possibly professional specialists) to accurately value and divide substantial assets.

Every family and situation is different, and predicting costs for high-asset divorce in Washington State is notoriously difficult and unreliable even with extensive experience. We would advise being very cautious of any law firm that promises you a confident and overly optimistic prediction. We encourage having a case evaluation first so we can try and give you a roadmap of the journey ahead. We promise to be pragmatic and realistic – we want to make sure you understand what is involved.

Our team is always thrilled to hear when spouses are amicable, and it certainly makes the process smoother. You still must wait 90 days to get divorced, but most of the stress will be absent from the process. In these circumstances our role is mostly communicating with the other spouse and drafting a few documents with your assistance. While there are some additional considerations for a high-asset divorce, our lawyers require just a fraction of the resource for an amicable divorce, and it is guaranteed to be less than the cost of a hostile dissolution.

Child custody and support considerations often run parallel to divorce proceedings.

Not all people getting a divorce have kids, and not all people with kids are ever married, so we put the answers to your child-related questions on our child custody and support page.

Washington is a community property state. The court decides if property is considered separate or community, but barring a few exceptions, most property acquired during a marriage is considered community and is subject to a “fair and equitable division”. What your separation may look like will depend wildly on your individual circumstances, because what is fair for one is unfair for another. For high-asset divorces, there is also the possibility of property that is owned in separate business arrangements, or even internationally. Our high-asset divorce lawyers will work through all the detail of division.

Many counties will issue a financial restraining order as an automatic part of the separation process. This order will stop both parties from making any atypical financial decisions, such as closing credit cards, liquidating accounts, selling real estate, dropping insurance, etc. before that restraining order is served on the other party. However, you have limited recourse to retrieve funds if they are moved before the process has begun, so it’s important to move quickly, quietly, and with professional assistance from a high-asset divorce lawyer if you have concerns.

It depends on the circumstances, but generally if the court believes a spouse is capable of working, the law assumes they are working full-time (at least 35 hours/week) and can reduce their spousal support by an assumed income amount. This also applies to child support in Washington State.

Depending on the circumstances, you may be able to claim interim support through a temporary order motion at the start of the dissolution process. Temporary orders only last if the case is pending, and are intended to temporarily ensure one spouse is not left destitute if the proceedings take a long time. Circumstances will vary between couples and family situations, so please reach out to our high-asset divorce lawyer team if you want more tailored advice.

Spousal support (also known as alimony) is not granted as often as it used to be in Washington State. Each spouse is generally expected to account for their own care and financial needs. When the court does order spousal support it is done in relatively narrow circumstances – for example, if the marriage was extremely long, or if one spouse has been out of the workforce for decades. Even then, spousal support is usually only granted for enough time for the dependent spouse to find their feet, find a job, or go back to school. There are exceptions, so get in touch if you have questions about your individual circumstances.

Thankfully, Washington does not care about the sexual orientation, religion, or ethnicity of the separating parties – the process of high-asset divorce is the same for everyone. Our team is proud to work with clients of all backgrounds and walks of life. If you have religious considerations, pronoun preferences, or other concerns, please alert your onboarding team. We will be happy to assist you further.

Some couples who were never married can claim that they were in a Committed Intimate Relationship (CIR) – a “stable, marital-like relationship where both parties cohabit with knowledge that a lawful marriage between them does not exist”. If you have been in a CIR, you may be entitled to divide property acquired during your relationship. It is important to note that CIR couples can never receive spousal maintenance though.

It is very common in high-asset divorces for private agreements to be in place related to finances, property divisions, dispute resolution, and spousal maintenance. How your agreement might impact your divorce will depend on its language, and under what circumstances the agreement was drafted.

Keep in mind that courts do not generally enforce provisions of nuptial agreements that address parenting and custody of children provisions. The court reasons that parties could not realistically know what arrangement would be in the best interest of children years or decades ahead of time.

Regardless of the type of divorce, there will be tax implications that both parties should consider, and for a high-asset divorce, the taxes on marital assets could equate to a substantial amount.

A high-asset divorce attorney is able to talk you through the process and make recommendations on how to best work through the tax ramifications of divorce and separation.