Protecting Yourself in a Washington Divorce After a Tech Layoff

Seattle residents have deep roots in the tech industry, and with good reason. A job at Microsoft or another high-tech firm was once considered a road to lifetime financial security. Then, some 61,000 tech workers lost their jobs in the first quarter of 2025. 

The parade started early when, in February 2025, Meta cut 3,600 jobs, citing a renewed focus on performance and productivity. That same month, HP filed notice that it would lay off between 1,000 and 2,000 employees before the end of its fiscal year, aiming to cut costs by $300 million. Microchip Technology, another major player, announced 2,000 layoffs across the U.S. and the Philippines, tied to a manufacturing scale-back.

Intel made one of the most dramatic announcements, unveiling plans to lay off 21,000 employees — nearly 20% of its workforce. This followed a previous round of 15,000 job cuts.

Moreover, attempting to jumpstart a company that’d been sliding for years, incoming Intel CEO Lip-Bu Tan stripped management layers, offloaded non-core businesses, and rebuilt around what he called an “engineering-first” culture.

These layoffs tapered off in the second quarter, but they certainly have not stopped. For someone going through a Washington divorce, this could affect many aspects of it.  

So what could this all mean for you? Well, for starters, if you’re involved in a Washington divorce and get laid off from your tech job before it’s finalized, it could mean different things. Read on. 

Job Loss Classifications

The Bard famously wrote that a rose by any other name still smells as sweet. That assessment is probably correct. However, in the context of family law cases and job losses, the label of job loss could make a significant difference.

Retirement 

Retirement is a word that often looms large in spousal maintenance matters. As outlined in more detail below, judges typically modify maintenance orders when circumstances change unexpectedly. Usually, an obligor’s retirement isn’t an unexpected change. An obligor’s early retirement due to a layoff, however, is different.

Layoff

A layoff is a complete break between the former employee and the former employer. A layoff is frequently a pretext for a termination. For example, higher-ups might tell Rick’s boss to lay off 10 workers in the division, and since he doesn’t like Rick, his name is on the list. But for family law purposes, a layoff is a no-fault discharge.

Furlough 

Depending on company policies, a furlough is often basically an unpaid leave of absence. The employee is still employed by the company but cannot work and cannot receive pay. Many furloughed employees keep some of their benefits, which is a big deal for custody and other family law purposes.

Termination 

This catch-all word could refer to a layoff or firing. If the employee is going through a divorce, a Seattle family law attorney sometimes convinces employers to change “firings” to “terminations,” especially if the worker agrees not to seek unemployment benefits. Washington’s status as an at-will employment state makes this change easier to engineer.

Speaking of unemployment benefits, this money is subject to FSO (family support obligation) withholding, at least in most cases. Additionally, if unemployed spouses have passive income,  such as investments or rental properties, they may still be required to make spousal maintenance payments, even if they don’t receive unemployment benefits, unless a court orders otherwise.

Direct Effects of a Tech Layoff

Any loss of income can have devastating consequences for a household. About a third of Washington families cannot pay cash for a $400 emergency expense. This proportion has increased significantly since 2013.

Travel Expenses

Usually, if a non-residential parent lives a significant distance from the children, the court makes special provisions to divide the higher costs of long-distance transportation. The distance the court considers warranting sharing transportation costs is not a set number of miles.  It varies from case to case and depends on a variety of factors, including the mode of transportation involved, whether overnight housing is necessitated, and the frequency of visits anticipated. Each case involving long-distance transportation may also involve circumstances unique to the family’s situation. As an example, if the children visit the non-residential parent by means of air travel, part of the cost to be divided may include the cost of one of the parents to travel with them if they are too young to fly as unaccompanied minors. 

Courts are required under the law to make this division based on the proportional income of each spouse unless there are express findings warranting a “deviation.” The reason for the move, or which parent chose to move, is rarely relevant. The parents, as adults, have a right under the US Constitution to reside where they wish. Allocation of the transportation costs is seen by the court as a matter of applying math, not fault.

Layoffs may or may not lead to income recalculation. The distinction between furlough and layoff is a good example. A furlough is a temporary situation that usually doesn’t justify modification. A layoff is a permanent separation that can impact financial commitments, particularly if it lasts longer than a month.

Child Support and Spousal Maintenance Payments

Life changes sometimes affect child support and spousal maintenance payments. For example, if the obligee spouse remarries, spousal maintenance payments terminate as a matter of law unless there is an express order to the contrary in the divorce decree. Child support payments, however, are unaffected absent a legal basis for modification.  Remarriage alone is not a basis for a child support modification. 

Indirect Effects

Industry layoffs are nothing new in Washington. Throughout their careers, many aerospace workers are employed by multiple companies. If they get laid off at Boeing, they go to Cessna; if they get laid off at Cessna, they go to BAE, and so on. 

But the recent tech layoffs are different. Seemingly, everyone is laying off, and no one is hiring. Job loss increases stress and has other mental health effects. Depression is a good example. Many depressed people lose interest in activities, such as their children’s soccer games. A Seattle family law attorney must point out that the lack of interest is only temporary until a new job opportunity arises.

A longer-term employment disruption could affect asset division in an ongoing divorce, child support obligations, and spousal maintenance. In equitable division states like Washington, courts consider the financial circumstances of both spouses, including income and assets. Job loss could mean a disproportionate division. That’s especially true if a person must retrain to find work in another industry, and this may factor into the issue of possible spousal maintenance obligations. 

Speak With a Seattle Family Law Attorney About How a Tech Layoff Impacts Divorce

Tech layoffs can be brutal, and they could affect divorce proceedings. At Elise Buie Family Law, our team of Seattle family law attorneys has vast experience in helping clients navigate a tech divorce, including the unique emotional aspects involved, and can help with yours. Contact us today or schedule a convenient time to speak.