There are four primary financial parts in a divorce:
1. Property and debt division
2. Spousal maintenance (alimony)
3. Child support
4. Professional fees (transaction costs).
The components can be interdependent: the property division may affect spousal maintenance and child support; spousal maintenance may affect the property division and child support; and child support may affect spousal maintenance and even sometimes the property division.
In Washington, the law does not provide a formula for property division or spousal maintenance amount and duration; while there are worksheets for child support, but they only yield a presumptive amount from which there may be a “deviation.” Generally, the goal in a divorce is to ensure that the overall outcome will be as fair to everyone as circumstances will permit, including the obligation to support children.
In a Collaborative Divorce, a professional team will ordinarily spend some time working with the assets, debts, and budgets of both parties, to ensure that the financial future of both will be as secure as circumstances may allow.
Financial decisions that are made during a divorce may well have tax consequences now or later), and the tax rules can be complicated. Different types of property have different after-tax values.
The financial part of a divorce is vital to your future and your family's future. Get good financial and tax advice, and take your time to carefully consider your options and the various ways you can accomplish your financial goals before making any final decision. In a collaborative divorce, be sure that your team includes a neutral financial specialist, who can provide you and your spouse with careful financial analysis and education.