Divorce can be a challenging process, especially when it comes to dividing assets like pensions and retirement accounts. In Washington state, understanding how the court splits these assets can help you prepare and plan for your future.
Community property rules
Washington follows community property rules. It means that most assets acquired during the marriage fall under the umbrella of community property and get divided equally. It includes pensions and retirement accounts earned while married. However, any pensions or retirement funds acquired before the marriage are usually separate property and not subject to division.
Division methods
There are several methods to divide retirement accounts in a divorce. Including:
- Deferred division method: If you use this method, each spouse receives a portion of the benefits when they start getting paid out.
- Present value buyout: With this method, one spouse keeps the entire retirement account and compensates the other with assets of equal value.
Considerations for equitable division
While community property laws aim for equal division, courts in Washington may consider factors to ensure the division is fair. These factors can include the length of the marriage, each spouse’s financial situation, and contributions to the marriage, both financial and non-financial.
Special considerations for military pensions
Military pensions have unique rules for division. The Uniformed Services Former Spouses’ Protection Act (USFSPA) allows state courts to divide military retired pay. However, the method of division and the share awarded can vary based on the specifics of the case.
Moving forward with confidence
Dividing pensions and retirement accounts in a Washington divorce involves several steps and considerations. Careful planning and professional guidance can make a significant difference in achieving a fair outcome.
