Parties to a Washington divorce may reach an agreement to resolve the issues in their case. A CR 2A agreement, named after Washington Superior Court Civil Rule 2A, can resolve a number of issues, including property distribution and debt allocation. CR 2A agreements may also include an alternative dispute resolution requirement.
A husband recently appealed an enforcement order, arguing the matter should have been resolved through the alternative dispute process set forth in the CR 2A agreement. According to the appeals court’s opinion, the parties got married in 1991. They separated in 2017 and the husband filed for divorce at the end of 2018. The marital estate was worth about $194 million. The parties entered into a CR 2A Agreement and Separation Contract that allocated some property and made financial management arrangements in August of 2019.
The agreement allocated a development project to the husband and allowed him to borrow up to $3 million from the wife with 6% interest. She could choose to either invest the loan into the project or make the loan part of the equalizing payment. If she chose not to invest in the project, the agreement required the husband to pay the equalizing payment with 7.5% interest from the date she notified him of that decision. The payment would be due within 12 months of entry of the divorce decree. If the payment was not paid timely, it would accrue 12% per annum interest.