Going through a Washington high net worth divorce is not the same as a typical separation. When you have significant assets, like businesses, real estate, large bank accounts, or investments, the divorce process becomes more complicated. It’s not just about who gets what furniture or who keeps the house. It’s about protecting wealth, managing complex financial decisions, and planning for life after divorce.
This guide explains what you need to know about high asset divorces in Washington, from how the law works to how you can protect yourself financially.
What Is Considered a High Net Worth Divorce?
A high net worth divorce typically involves couples with $1 million or more in combined assets. But it’s not just about the dollar amount. These divorces often involve:
- Businesses or professional practices (like medical offices, tech startups, or law firms)
- Multiple real estate properties, including vacation homes and rental units
- Retirement accounts like 401(k)s, IRAs, or pensions
- Investments in stocks, bonds, cryptocurrency, or private equity
- Luxury items like jewelry, cars, art collections, or boats
- Trust funds or inheritances
In short, if you’ve built a large financial life together, your divorce likely falls into the high net worth category.
How Does Property Division Work in Washington?
Washington is a community property state. That means most of what you earn or buy during the marriage belongs to both spouses equally.
What is Community Property?
In Washington, community property includes almost everything acquired during the marriage, regardless of whose name is on the title or account. This typically covers money earned by either spouse, real estate purchased together, investments funded with joint income, retirement contributions made during the marriage, and businesses started or expanded while married. Since Washington is a community property state, these assets are generally considered jointly owned and subject to division during divorce.
What is Separate Property?
Separate property usually stays with the spouse who owns it and is not divided in the divorce. This includes anything you owned before the marriage, inheritances or gifts given specifically to one spouse, and assets purchased after the date of separation. However, if separate property gets mixed with shared assets, like depositing inheritance money into a joint account, it may become harder to keep it fully separate.
Warning: Sometimes separate property becomes mixed (this is called commingling). For example, if you use inheritance money to buy a house together, that house may now be partly community property. In high net worth divorces, figuring this out is often complicated and may require expert help.
Common Problems in Washington High Net Worth Divorce
When there’s a lot of wealth involved, divorce gets tricky. Here are the biggest challenges you might face:
1. Valuing Assets Properly
Not all assets are easy to value. For example:
- A business might be worth millions, or much less, depending on who you ask.
- Stock options or restricted stock units (RSUs) may not have a clear value today.
- Real estate values can go up or down fast.
That’s why appraisers, accountants, and business valuation experts are often hired in high net worth cases.
2. Hidden Assets
Sometimes one spouse tries to hide money or property. Common ways this happens include:
- Moving money to secret accounts
- Transferring property to friends or family
- Undervaluing a business
- Overpaying taxes to get a future refund
To prevent this, many couples use a forensic accountant, an expert trained to track down hidden wealth.
3. Business Ownership
If you own a business, it’s probably part of your divorce. The court will look at:
- When the business was started (before or during the marriage)
- How it was funded
- Whether both spouses contributed to its success (even indirectly)
Businesses are hard to divide, so most couples use strategies like buyouts (one spouse keeps the business and pays the other their share) or asset swaps (one spouse keeps the business, the other gets more property or investments).
4. Spousal Support (Alimony)
When one spouse earns much more than the other, spousal support (alimony) often comes into play. Washington courts look at the standard of living during the marriage, each person’s income and financial needs, the length of the marriage as well as whether one spouse gave up a career to support the other or raise children
There’s no set formula, but in high net worth divorces, spousal support can involve large amounts or long payment periods.
5. Taxes and Financial Planning
Selling property, splitting investments, or dividing retirement accounts can trigger big tax bills if not handled correctly.
Common tax concerns include:
- Capital gains tax when selling stocks or real estate
- Tax penalties for early withdrawal from retirement accounts
- Loss of tax advantages if you divide business ownership
That’s why couples often hire financial planners and tax advisors during the divorce process.
Child Support and Custody in High Net Worth Divorces
Child support works differently in high-net-worth divorces. While Washington follows standard child support guidelines, the court often adjusts the amounts when significant wealth is involved. This can include covering private school tuition, special extracurricular activities like sports or arts programs, unique medical care needs, and even travel expenses for visitation if parents live in different states or countries.
The goal is to maintain the child’s lifestyle as close as possible to what they experienced during the marriage.
Parents must also create a parenting plan that includes:
- Where the children will live
- How decisions will be made about schooling, healthcare, and activities
- How holidays and vacations will be shared
Protecting Privacy in High Net Worth Divorces
Wealthy couples often have serious concerns about privacy during a divorce. Since Washington court records are generally public, sensitive financial information, like income, business valuations, or asset details, can become part of the official court file, making it accessible to others. To avoid public exposure, many high-net-worth couples choose mediation to settle disputes privately, or private arbitration, where a neutral third-party judge handles the case outside of the public court system. Couples can also create confidential settlement agreements to keep financial terms private. In some situations, the court may agree to seal certain records to protect sensitive details, but this usually requires a specific request and a valid reason.
How Long Does a High Net Worth Divorce Take?
A high net worth divorce in Washington usually takes 12 to 18 months, but some cases can take longer if:
- You’re dealing with complex business or asset valuations
- There are child custody disputes
- One spouse hides assets or refuses to cooperate
Settling out of court can shorten the timeline. Going to trial usually takes longer and costs more.
Do I Need a Lawyer for a High Net Worth Divorce?
Yes. High net worth divorces are too complicated to handle alone. You’ll likely need:
- A divorce attorney with experience in high asset cases
- A forensic accountant to find hidden money or value businesses
- A financial planner to help you prepare for life after divorce
- A tax advisor to help minimize tax problems
Having the right team by your side can save you money and stress in the long run.