Financial Implications of Legal Separation: What You Need to Know

The decision to end your marriage is often difficult. Before divorce, couples may separate, living apart before they divorce. However, there are many financial and other issues that arise when spouses uncouple. A legal separation may be the best solution for those who wish to resolve the main settlement issues of divorce during this period of uncertainty in their lives. An experienced family law attorney will guide you through the separation process and help you with financial concerns during this tumultuous time. 

What is a Legal Separation?

A legal separation is an agreement between couples that is formalized through a court order. Legal separation takes care of the settlement matters that are typically part of the divorce process. A legal separation provides a method by which couples can formalize their financial matters in a fair and equitable manner. A separation formalizes the process and gives couples a way to legally divide their property and protect their finances. A legal separation does not end the marriage. 

You need to know that when one party moves out of the marital home, they are physically separated. This is not a legal separation, even if both parties are in agreement. In order for a separation to be legal, it must be done through the court system. When couples legally separate, they may still choose to reside together if they want. Additionally, parties may still be allowed to share some benefits, such as health insurance, retirement, or social security benefits, as well as possible tax benefits. 

Division of Property

One of the biggest financial implications during separation comes from the division of property. Without a legal separation in place, couples may continue to argue about how they divide their assets, particularly their money, real estate, and other assets. The best way to protect yourself is with a legal separation agreement. Even if couples agree, if they do not put it on paper, they could end up in a bitter legal battle. A legal separation also defines what property is community property and which is separate property.

Community Property

Community property is defined in the Revised Code of Washington (RCW 26.16.030) as any property that is obtained during the marriage by either partner or both partners. In Washington state, community property is to be divided in a just and equitable manner between partners in a divorce. Separate property is any property a person owned before marriage, as well as any gifts or inheritances they received during marriage. 

It is important to know that property obtained after a legal separation is considered separate property. This means that it is not included in the distribution of property in a divorce. Therefore, a legal separation will protect both parties from an obligation to pay for something for which they did not approve. 

It can be difficult to determine whether some types of property are community or separate. For instance, if one party purchased a home prior to marriage, but both paid for the mortgage and maintenance costs during marriage, both people may own a portion of it. A knowledgeable family law attorney will help parties determine what portion of their assets is community and what portion is separate in order to make sure that you have a fair distribution in your legal separation. 

Responsibility for Debts

One of the essential parts of a legal separation is defining the responsibility for debts. Once a legal separation is put into place by the court, each party is responsible for their own debts going forward. This helps ensure that during the separation period, neither party will incur debts or make purchases that the other may be responsible for paying. Neither person will have to pay for the financial obligations of the other as they did during marriage. One of the reasons that couples may wish to protect themselves with a legal separation is that it does not require any type of waiting period. A divorce in Washington requires a 90-day waiting period. 

Child Support

Child support can have a significant impact on parents when they separate. Generally, children reside primarily with one parent and have regular visitation with the other. The non-custodial parent is responsible for the payment of child support. A legal separation addresses support and ensures that the child receives adequate payments to provide for their well-being. Washington uses an income share model that takes the income of both parents into consideration when calculating child support. Each parent is responsible for a portion of the child’s financial support.  

Spousal Maintenance

Spousal maintenance, also called support or alimony, is money paid by one party to the other, typically as part of a legal separation or divorce order. Washington law (RCW 26.09.090) allows for the court to grant spousal maintenance based on a number of factors. In some cases, maintenance may be temporary while one partner is able to get training or education to enter the workforce. Some factors that the judge will evaluate include such things as the length of the marriage, the age and health of each spouse, and the ability of each spouse to be able to meet their financial obligations. Both parties should be able to continue living the lifestyle that they became accustomed to during the marriage. 

Help From a Knowledgeable Family Law Attorney

A legal separation may be a good option for those who are considering divorce at a later date or who wish to remain married for personal or religious reasons. While you are not required to have an attorney represent you in a legal separation, it can be extremely beneficial. Your lawyer will always work on your behalf to ensure that you get a fair settlement and to protect your rights. Your attorney makes sure to review the financial implications of a legal separation and handles the many issues that arise in a way that will be beneficial. 

It is helpful to seek guidance from a qualified family law attorney to determine your options and choices as you decide to separate or divorce. To learn more, contact our legal team today at View Ridge Family Law & Estate Planning at (206) 966-4020 to schedule a consultation.