In Washington, all property, whether it be separate property, or community property, is before the Court for an equitable division. "Equitable" does not mean "equal". Equitable means fairly. The Court looks at the nature and extent of the separate property of each spouse, the nature and extent of the community property, the length of the marriage; and the economic circumstances of each spouse at the time the division would become effective. In order to make these determinations, the Court has to decide what property is before it for division, what is the value of that property, and is the property community property or separate property.

What is the "property" of the marriage?

People sometimes make the mistake of thinking that "property" only includes real property like houses and land. That is not the case. Property also includes things like the household furnishings, vehicles, retirement pensions, deferred compensation plans, stock options, etc. Some things, however, cannot be divided by the Court, even though they are "property". Examples would include benefits that follow the person, such as disability benefits, social security benefits, or professional degrees, etc.

How is the property valued?

Property can be valued in a variety of different ways. Fair market value is one that is common to dissolution proceedings. If no agreement can be reached regarding values, it may be necessary to hire an expert witness to conduct a valuation of the property.

What is community property?

Community property is property which is equally owned by a husband and wife by reason of their marital status. It is presumed that all assets acquired during marriage are community property, although this can be disproved. It also includes assets that the spouses agree are community property and assets which become community property because they are commingled - mixing separate property and community property to the extent that it is no longer possible to identify what is separate and what is community.

What is separate property?

Separate property can encompass a variety of things. The most common are assets owned by a spouse before marriage, assets received after marriage by gift or inheritance, and personal injury awards.

What is a QDRO?

In many cases, a portion of tne spouse's retirement benefit may be awarded to the other spouse. In such cases, a QDRO, or Qualified Domestic Relations Order, must be prepared, signed by the Court, and submitted to the plan administrator. The QDRO instructs the plan administrator to recognize the rights of the former spouse, who will be referred to in the order as the "alternate payee", and to pay the alternate payee's benefits directly to them. Many plans have specific requirements for their QDRO's that must be met. Certain situations may require the hiring of a specialist to prepare the QDRO. You will also want to discuss possible tax consequences of the QDRO with your tax preparer or financial planner.

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