The transfer of assets to a living trust does not avoid the liabilities of the owners of the property so long as the trust is revocable and the owners still retain the control and benefits of the property. California will also not allow you to transfer your assets to an irrevocable trust to avoid paying your creditors, even if you give up all rights and benefits over the property.
His ex-wife should not be able to garnish your wages to pay his child support.
If his ex is making misrepresentations re your husband's situation, your husband should be in there objecting to what she says and presenting his own evidence. As soon as possible, he should retain a Washington attorney and seek a modification of the child support order if appropriate.
If he is not willing to do this, you may want to consult a California attorney as to your rights and protecting your wages and interests in your community property.
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A living trust will not protect your assets in the way you are hoping. Because you retain control over everything in the living trust, the assets are not protected. Instead, you need to get a good family law attorney to help you modify the child support agreement. Trying to hide your assets will only get you into trouble.
This response is for information only and does not create a lawyer-client relationship. Responses are general in nature, and may not apply to your specific fact situation. Without knowing all of the facts, I cannot be sure that this response is actually the best course of action for you.
What you want to do by "hiding" assets is not going to work. What it sounds like is that she convinced a court to impute 10k worth of income to him. The increase two years ago sounds like it went unopposed. A spouses income is not normally attached.
Your best bet is to hire a WA attorney and try and modify the child support order to guideline child support using current income. You need to over come how the income was imputed but it is not impossible.
This is for general information only. Nothing in this information should be construed as creating an attorney-client relationship nor shall any of this information be construed as providing legal advice. Laws change over time and differ from state to state. These answers are based on California Law.Applicability of the legal principles discussed may differ substantially in individual situations. You should not act upon the information presented herein without consulting an attorney about your particular situation. No attorney-client relationship is established.