[WSBAPT] Debt Allocation On Separate v Community

[James W. Spencer]

Greetings Jennifer:
Based on these limited facts, that the house, the appreciation, and the mortgage are all separate. The community may have a right of reimbursement enforced by an equitable lien against the property, but I'd need to know a lot more facts.
Feel free to reach out to me by email today if you'd like to discuss this in more detail. jamess at brothershenderson.com<mailto:jamess at brothershenderson.com>.
Best wishes,
James
James W. Spencer
Attorney at Law
Brothers & Henderson, P.S.
2722 Eastlake Avenue East, Suite 200
Seattle, Washington 98102
Phone: (206) 324-4300 x106
Fax: (206) 324-3106
e-mail:  jamess at brothershenderson.com<mailto:jamess at brothershenderson.com>
www.brothershenderson.com<http://www.brothershenderson.com/>
pronouns: he/him/his

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jennifer Modak
Sent: Friday, April 24, 2020 10:53 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Debt Allocation On Separate v Community

Hi Listmates,
I have a situation where I am trying to ascertain where to allocate the mortgage debt for a decedent's separate property or on the community property share.

Relevant Facts,

  1.  Wife owned house as separate property prior to marriage with a mortgage (equity $200K at time of marriage)
  2.  H and W marry (less than 5 years), House only in W name, house goes up in value ($300K Equity in a few years), W dies, no Will, she has children from prior marriage.
  3.  H now claims community property interest on the $300K
Question: Based on the statute below, does the mortgage get split between the separate and community interest?  Or all to separate or all to community? I understand based on case law that the community property interest will have to be reduced by the amount paid on the mortgage for the benefit of living in the home. Thanks for any advice.
RCW 11.10.030. Allocation of separate and community assets
(1) A community debt or liability is charged against the entire community property, with the
surviving spouse's or surviving domestic partner's half and the decedent spouse's or decedent
domestic partner's half charged equally.
(2) A separate debt or liability is charged first against separate property, and if that is insufficient
against the balance of decedent's half of community property remaining after community debts and
liabilities are satisfied.

My understanding is that t
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