§30.02 What Is Property?

• Jurisdiction: Washington

§ 30.02 WHAT IS PROPERTY?

RCW 26.09.080 requires that the court in a dissolution action distribute the property of the parties. The statute does not define "property."

For purposes of a marriage dissolution in Washington, property can be tangible (e.g., a house) or intangible (e.g., the goodwill of a business), but it must be something to which there is a right. The right does not necessarily need to be a right to present use or dominion. For example, a remainder interest in real property that is subject to a life estate is divisible "property," even though the remainder interest may never mature (as when the remainderman dies before the life tenant). Similarly, an unvested stock option is divisible "property," even though the stock option may never vest (as when an employee is terminated before the option vesting date).

There is no right to an expectancy, such as a prospective inheritance, and thus an expectancy is not divisible "property."

"Property" has been defined as "a term of broad significance, embracing everything that has exchangeable value, and every interest or estate which the law regards of sufficient value for judicial recognition." In re Marriage of Harrington, 85 Wn. App. 613, 624, 935 P.2d 1357 (1997) (citing WASHINGTON FAMILY LAW DESKBOOK § 38.2 (Wash. St. Bar Assoc., 1989) and quoting York v. Stone, 178 Wash. 280, 285, 34 P.2d 911 (1934)); see also In re Marriage of Langham & Kolde, 153 Wn.2d 553, 564, 106 P.3d 212 (2005).

Certainly, any attorney or lay person can identify most items of tangible property. The difficulty comes in identifying certain intangible property interests. One reason for this difficulty...