Characterization of property as separate or community in a Washington divorce case is determined at the date the property was acquired. An increase in separate property’s value is presumed to also be separate property. Separate property remains separate unless there is clear and convincing evidence showing it was converted to community property. Generally, a written acknowledgement is required to rebut the separate property presumption for real property. In a recent unpublished case, a Washington appeals court considered whether a trial court erred in characterizing equity in separate real property as community property.
A month before the marriage, the wife purchased a home for $207,000 with a $40,000 down payment. The parties got married in September 2016 and their son was born the same day. The wife generally stayed home caring for the child.
The husband petitioned for divorce in June 2022. The parties separated at the end of June. They agreed the marital home, which was the one purchased by the wife before the marriage, was worth $402,000. They also agreed it was the wife’s separate property, but the husband claimed he had an “equitable interest” in the property and asked the equity, less the wife’s down payment, be divided equally.