I have my characters set up to be able to attack each other using a sword actor attached to a hand bone and the hitbox is set active using montage window notifies.
I’ve come this far but have now hit a wall as I don’t know what a good way to create this system would be. I’m just looking for a base I can expand on, I just don’t know how to start since I haven’t made something like this before.
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Hey I think you’re asking for some logic regarding this, make sure you’re familiar with some concepts I’ll attach learning material to the bottom of this post for.
Blocking logic example
Calculate damage taken (and account for blocks & parries) logic
Parry apply on enemy logic, don’t use set game paused 
Event dispatcher/delegates (on variable change is relevant for this) https://www.youtube.com/watch?v=r20VEPH_e0o
Blueprint interface (send info from attacker to defender)