Washington business owners may face some particularly challenging situations with regard to companies started before marriage should the marriage later end in divorce. Many times, one spouse has entered a marriage as a business owner and continues to build upon the business without input or assistance from the other spouse. Later, if the couple divorces, the spouse who owns and runs the business may be forced to pay out half of its value to the other spouse in a high asset divorce.
This is obviously a topic that a business owner will want to consider before filing for divorce. In past situations, many have used prenuptial agreements as means to prevent financial loss of business assets later down the line. What is considered community (marital) property or separate (premarital) property varies by state. Anyone considering divorce in Washington will want gain clear understanding of guiding regulations in this state before taking any legal action.
Another highly contested topic in high asset divorce is that of spousal and/or child support. Typically, the person with the higher income is set to lose more money since the court usually considers income level a leading factor in decisions regarding any type of payments to a former spouse. Often, a concerned wage earner will turn to an experienced attorney for guidance before appearing in front of a judge about such issues.
It is not set in stone that a main breadwinner during a marriage will be the one who loses the most money in a divorce. However, it is advisable to research possible outcomes regarding such matters, and others pertaining to high asset divorce in Washington, before attempting to obtain a favorable settlement. Every situation is different, and what may be the best course of action for one person may not be for another.
Source: cheatsheet.com, “Divorce and Money: How Much Would You Lose?“, Sheiresa Ngo, May 2, 2016