Handling Hidden Assets in a Washington Divorce

Divorce requires both parties to make full and honest financial disclosures. But not everyone plays by the rules. There are often concerns that a spouse may attempt to hide money, underreport income, or move assets to avoid dividing them during the divorce. In Washington, this is not only unethical, it can lead to serious legal consequences.

Common Ways Assets Are Hidden

Hidden assets can take many forms. Some of the most common examples include:

• Transferring money to family or friends.
  
  
• Creating fake business expenses.
  
  
• Undervaluing or concealing business interests.
  
  
• Withdrawing cash from joint accounts.
  
  
• Opening secret bank or cryptocurrency accounts.
  
  
• Overpaying taxes or debts to reclaim funds after the divorce.

How Hidden Assets Are Discovered

Washington family law allows extensive discovery tools to uncover hidden income and property, including:

• Interrogatories and Requests for Production: Formal written questions and document requests.
  
  
• Subpoenas: Obtaining records directly from banks, employers, or third parties.
  
  
• Depositions: Questioning a spouse or witness under oath.
  
  
• Forensic Accountants: Financial experts who trace money movements, review tax filings, and uncover irregularities.

The more organized your financial documentation is, the easier it is to spot inconsistencies. You can work with your attorney informally to review this information, and if you believe a more thorough investigation is required, hiring a forensic account to perform a full audit may be helpful.

Consequences of Hiding Assets

Courts do not look kindly on dishonesty. A spouse caught hiding assets can face:

• Loss of credibility before the judge.
  
  
• An unequal division of property as a penalty.
  
  
• Payment of the other party’s attorney’s fees.
  
  
• Potential sanctions or contempt findings.

In some cases, intentionally hiding assets may even rise to the level of fraud.

What to Do if You Suspect Hidden Assets

If you believe your spouse isn’t disclosing everything:

1. Stay calm and let your attorney handle communication.
   
   
2. Gather copies of financial statements, tax returns, and account records.
   
   
3. Avoid direct accusations without proof - let evidence lead the argument.
   
   
4. Discuss the possibility of hiring a financial expert early in the process.

Protecting Your Rights

Dividing property fairly requires a complete financial picture. At Magnuson Lowell, P.S., we help clients uncover hidden assets and ensure full transparency in divorce proceedings. Our team uses strategic discovery tools and expert resources to protect your financial future.

Call us today for a free telephone case evaluation 425-800-0573 to discuss your Washington divorce and learn how to ensure your settlement is truly fair.

In Washington, student loan debt is not automatically treated the same way in every divorce. While the state follows community property principles, meaning that debts incurred during marriage are often shared, courts also consider who benefitted from the education and how the loan proceeds were used.

• Before Marriage: Student loans taken out before marriage are most often considered separate property.
  
  
• During Marriage: Loans taken out while married may be considered community, especially if the funds were used to support the household in addition to paying tuition.
  
  
• Mixed Use: If the loan covered living expenses for both spouses, courts may treat some or all of it as a community obligation.

Who Pays the Debt After Divorce?

Unlike credit cards or mortgages, student loans often stay with the spouse who took out the loan. However, Washington courts have discretion. They may order both parties to share the debt if:

• The other spouse benefitted from the education (e.g., increased household income).
  
  
• Community funds were used to repay the loans during the marriage.
  
  
• The loan supported family expenses beyond tuition.

Impact on Property Division

Courts aim for an equitable division of all assets and debts. If one spouse takes responsibility for significant student loan debt, the other may receive less overall debt or fewer offsets against property. And, remember, Washington judges have the authority to split assets and debts however they believe is fair and equitable. In other words, even if a student loan was acquired as a separate debt, a Washington judge can make financial decisions related to that debt in addition to community property.

Planning Ahead

If you or your spouse has student loans and you are facing divorce, consider:

• Gathering detailed loan records, including when the loans were taken out and how funds were used.
  
  
• Reviewing payment history to see if community funds contributed to repayment.
  
  
• Being prepared for negotiation, as courts often weigh student loans differently from other debts.

Protecting Your Financial Future

Student loan debt can affect your financial stability long after divorce. Understanding how Washington courts handle these cases will help you prepare for fair negotiations.

At Magnuson Lowell, P.S., we guide clients through complex financial issues in divorce, including the division of student loans. Call us today 425-800-0582 for a free telephone case evaluation to learn how we can help protect your financial future.

Sports, music lessons, tutoring, and other extracurricular activities are often a big part of a child’s life. When parents divorce, deciding how to handle these activities can become a source of conflict. A well-drafted parenting plan should address extracurriculars to avoid future disputes and ensure children continue benefiting from the activities they love.

Who Decides on Activities?

In Washington, decision-making authority can be joint or sole in specific areas such as education, health care, or even religious upbringing. Often, each parent is responsible for extracurricular activities during their residential period. That being said, some Parenting Plans will require joint decision-making for activities.

Common Disputes About Extracurriculars

Parents often disagree about:

• Which activities the child should participate in
  
  
• The time commitment required, especially if it interferes with one parent’s residential time
  
  
• The cost of activities and who should pay
  
  
• Whether the activity is in the child’s best interests

Addressing Costs

The Parenting Plan might grant authority to make decisions about activities, but those costs are more likely determined in the Child Support Order. Washington child support orders don’t automatically cover every extracurricular expense, but parents can agree to divide costs or request that the court include activity expenses in a support order. Clarity about who pays what is essential.

Scheduling and Parenting Time

One of the most common conflicts is whether practices, games, or rehearsals interfere with a parent’s scheduled parenting time. Parenting plans should outline:

• Whether both parents are expected to transport the child
  
  
• If activities can occur during the other parent’s time
  
  
• Whether either parent can add or remove activities without the other’s consent

Best Practices for Parents

• Communicate early about activities and schedules.
  
  
• Keep the child’s interests first, not parental convenience.
  
  
• Document agreements in writing to avoid misunderstandings.
  
  
• Stay flexible understanding that kids’ interests and schedules change over time.

Work with an Attorney for Clarity

Addressing extracurricular activities upfront can prevent unnecessary conflict later. At Magnuson Lowell, P.S., we help parents draft and negotiate parenting plans that account for real-life needs, including sports, lessons, and other activities. Contact us today for a free telephone case evaluation 425-800-0582 to ensure your plan works for your family.