Property Division In Seattle: What You Need To Know

Dividing property during a divorce is one of the most challenging and emotionally charged aspects of the process. In Washington state, and specifically in Seattle, the rules are guided by community property laws; however, how those laws play out in real life can be far from simple.

To shed light on this important topic, we spoke with Brian Litzinger, Managing Attorney at Modern Family Law’s Seattle office, who offered his expertise on how courts handle property division and what divorcing spouses should consider.

Community Property In Seattle

Washington is a community property state, which generally means that assets and debts acquired during the marriage are considered equally owned by both spouses. But as Brian explains, people often oversimplify this rule:

“One of the biggest misconceptions people have when going through a divorce is the assumption that everything will be split 50/50. Many come to us saying, ‘I’m just going to get half of everything, right?’ But that is not always the case.”

Instead, courts look for an equitable distribution, which means a division that is fair, not necessarily equal. In some cases, this could result in a 60/40 split depending on the couple’s unique circumstances.

What Happens To A Business In Divorce?

Business ownership is one of the most complex areas of property division. “Even if one party started the business after the marriage, it is generally still considered community property. It does not matter whose name is on the title, who manages the business, or who technically owns it; if it was started during the marriage, it is likely part of the marital estate,” Brian explains.

In practice, what gets divided is the value of the business, often requiring experts to assess income, liabilities, and growth. If the business existed before marriage, courts may still recognize a community interest in the growth that occurred during the marriage.

Brian stresses one critical point for business owners:

“Keep very clear and accurate books. Commingling funds or failing to separate personal and business finances can lead to major complications in a divorce.”

Separate Property vs. Community Property

Assets owned before marriage are typically considered separate property, but how they are treated during the marriage can change their character.

Brian illustrates with an example:

“Let’s say you received an inheritance from a grandparent. If you kept that inheritance in a separate account and did not add your spouse’s name to it, it is likely to remain separate property. But if you added your spouse to that account or used the inherited funds to purchase something titled jointly, you may have converted some or all of that asset into community property.”

When disputes arise, attorneys may use tracing, a legal process to prove the origin of funds. This becomes especially important when proceeds from a premarital home or inheritance are invested into marital assets.

Retirement Accounts & Pensions

Retirement accounts are another area where separate and community property interests often mix.

“It is very common for them to have both community and separate property components, especially if you began contributing to the account before getting married,” says Brian.

To divide retirement assets fairly and without tax penalties, attorneys often use a Qualified Domestic Relations Order (QDRO). This ensures that funds are split correctly between spouses without triggering early withdrawal fees or tax consequences.

Misconduct & Property Division

Many people believe that a spouse’s misconduct, such as infidelity or substance abuse, impacts property division. Brian clarifies this common misconception:

“Courts are specifically prohibited from considering fault when distributing property. So even if a spouse had an affair or struggled with addiction, those factors typically do not entitle the other spouse to a greater share of the assets.”

The exceptions are when misconduct directly affects marital finances. For example, spending marital funds on an affair or forcing a spouse to pay for criminal defense costs related to abuse may allow the court to order reimbursement or an unequal division.

Key Takeaways

Property division in Seattle is nuanced, and outcomes depend on the facts of each case. To recap Brian’s expert advice:

• Businesses started during marriage are usually community property.

• Separate property can unintentionally become community property if it’s commingled.

• Retirement accounts often require a QDRO to be divided fairly.

• Misconduct generally doesn’t affect property division—unless it involves financial dissipation.

• Equitable does not always mean equal—50/50 is common but not guaranteed.

How Modern Family Law Can Help

Divorce is never easy, and dividing property in Seattle requires a clear understanding of community property rules and how courts apply them. As Brian Litzinger emphasizes, “Every case is unique, and the outcome depends on the specific financial and factual circumstances involved.”

If you’re facing divorce in Seattle and have concerns about property division, the attorneys at Modern Family Law are here to guide you through the process with clarity, expertise, and compassion.