[WSBAPT] Divorce, property settlement and estate planning

[Eric Nelsen]

The Decree should be sufficient to transfer title. A divorce decree (when properly drafted, anyway), is sufficient to transfer title. No deed is necessary. In re Marriage of Kowalewski, 163 Wn.2d 542, 548, 182 P.3d 426 (2008), citing see United Benefit Life Ins. Co. v. Price, 46 Wn.2d 587, 283 P.2d 119 (1955), overruled on other grounds by Aetna Life Ins. Co. v. Wadsworth, 102 Wn.2d 652, 689 P.2d 46 (1984). "The decree operates not only to vest in the spouse designated the property awarded to him or her, but to divest the other spouse of all interest in the property so awarded, except as the decree may otherwise designate." Price, 46 Wn.2d at 589.

The divorce decree is also public record so a title company will pick it up. That's probably why the ex-husband has no trouble getting a refi without a QCD from ex-wife.

That said, to be an effective transfer, the Decree does need to have the proper legal description and a proper real property judgment index, and have language that actually clearly awards title, not just some mention of "all equity to..." or something like that.

If he wants to put something in the deed records, you could record the divorce Decree as a judgment, though that does put an awful lot of other stuff into the deed records that the client might not want there, accessible immediately online for the world to see.

Alternatively (I haven't tried this, it's just a thought), how about a QCD from himself "who previously held title as a married individual" to himself "as an unmarried individual," and reciting in the consideration something like "to clear title and give notice of award of all interest in property to Grantee under divorce decree in X County Superior Court Case #xxxxxx." Then use the clearing title or the "mere change in identity or form" exemptions on the REET Affidavit, WAC 458-61A-215 or WAC 458-61A-211. It's not necessarily effective as an actual conveyance of land since ex-wife isn't a Grantor, but the Decree should be sufficient for the actual transfer of interest, and the more-or-less-useless QCD is at least effective to put notice in chain of title of the divorce.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA  98101-2837
phone 206-625-0092
fax 206-625-9040



From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Claudia A Gowan
Sent: Monday, March 16, 2015 9:59 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Divorce, property settlement and estate planning


Colleagues, I am looking for guidance on how to handle a title question.

New client coming in for estate planning.

Last deed recorded on his residence with the County was his deed gifting then wife a CP interest in the home.

Was divorced within last few years. Home was awarded to him under property settlement. However, no deed was issued through property settlement proceedings.

He refinanced the property after the divorce, but as far as I can tell, the lender did nothing to clear the records.

Any thoughts on how to handle this?

Many thanks, Claudia

Claudia A. Gowan

Claudia A. Gowan, PLLC
Market Place One, Suite 330
2003 Western Avenue
Seattle, WA 98121
(206) 443-2733 (T)
(206) 448-2252 (F)
claudia at cagowanlaw.com<mailto:claudia at cagowanlaw.com>

www.seattletrustsandestates.com<http://www.seattletrustsandestates.com/>


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