[WSBAPT] Referral Requested: Trust needed to hold proceeds during divorce

Jensen Mauseth jmauseth at mausethlegal.com
Fri Jun 3 20:24:01 PDT 2022


Brent,

Rather than have one of the attorneys who represents one of the parties hold the funds, the parties could engage a third-party to hold the money in escrow pending the outcome of the divorce. The escrow would require specific instructions on when and under what conditions to distribute the funds, and would likely only to agree to hold the funds for a specific time period (which could be a benefit in that it would put pressure on the parties to reach agreement). If there are any disputes about the disbursement, escrow simply interpleads the funds to the registry of the court and the parties can duke it out through the divorce and interpleader actions.

There are a few law firms in the area that do this kind of work.

Best regards,
Jensen

Jensen Mauseth
Mauseth Legal, PLLC
Bothell Office
22618 Bothell-Everett Hwy, Ste. D
Bothell, WA 98021
www.mausethlegal.com<http://www.mausethlegal.com/>
jmauseth at mausethlegal.com<mailto:jmauseth at mausethlegal.com>
(p) 425.242.5111
(f)  425.242.5114

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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of Paul Neumiller <pneumiller at hotmail.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Friday, June 3, 2022 at 3:42 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Referral Requested: Trust needed to hold proceeds during divorce

Actually, I don’t know about up here but I know the CA Bar Assn strongly urges against doing this.  So, everyone agrees NOW but what about later?  As an attorney, I do not want to be put into a position where my client is screaming that the other party breached the agreement and demands that I immediately release the money to my client.  Meanwhile, the other party is screaming that my client breached the agreement and is demanding that I immediately release the money to the opposing party.  Once again, I’m not sure about WA, but CA imposes fiduciary duties on an escrow holder to both parties. That is why I always decline to act as an escrow holder in a transaction where I represent one of the parties.


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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Candace Wilkerson
Sent: Friday, June 3, 2022 3:18 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Referral Requested: Trust needed to hold proceeds during divorce

Maybe others disagree, but I don’t think it’s an ethical violation as long as both parties agree to it.  Interesting.

Candace

*Candace is available to respond to emails and phone calls between the hours of 7:00 a.m. and 3:00 p.m.  If you have an urgent matter outside that time period, please call our office at the number below.

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Candace Wilkerson  | Senior Associate  |  Wong Fleming

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Top Ranked Law Firm for 2015 by Fortune Magazine and American Lawyer Media
Candace Wilkerson  | Senior Associate  |  Wong Fleming

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Phone: 425.869.4040  |  Fax: 425.869.4050
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Brent Williams-Ruth
Sent: Friday, June 3, 2022 6:02 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Referral Requested: Trust needed to hold proceeds during divorce

I had said the same thing and what I was told is that, allegedly, the attorney representing Spouse A - claims that it would be an ethical violation and thus, Spouse A has flatly refused to sign a listing agreement without a Trust being established.

There had been an agreement in principle since October 2021....and now Spouse B is worried about interest rates, inflation, etc that they will be getting even less because it is being drug out.

Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

**EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA 98063

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On Fri, Jun 3, 2022 at 2:58 PM Candace Wilkerson <cwilkerson at wongfleming.com<mailto:cwilkerson at wongfleming.com>> wrote:
Brent, why can’t one of the parties’ attorneys hold the proceeds in the IOLTA account until the decree is entered?  I’ve done that for feuding clients before in a partition case.

Candace Wilkerson

*Candace is available to respond to emails and phone calls between the hours of 7:00 a.m. and 3:00 p.m.  If you have an urgent matter outside that time period, please call our office at the number below.

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Top Ranked Law Firm for 2015 by Fortune Magazine and American Lawyer Media
Candace Wilkerson  | Senior Associate  |  Wong Fleming

10675 Willows Road NE, Suite 250  |  Redmond, WA 98052
Phone: 425.869.4040  |  Fax: 425.869.4050
cwilkerson at wongfleming.com<mailto:cwilkerson at wongfleming.com>

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Before proceeding, please note: If you are not a current client of Wong Fleming, please do not include any information in this e-mail that you or someone else considers to be of a confidential or secret nature. Wong Fleming has no duty to keep confidential any of the information you provide. Neither the transmission nor receipt of your information is considered a request for legal advice, securing legal services or retaining a lawyer. An attorney-client relationship with Wong Fleming or any lawyer at Wong Fleming is not established until and unless Wong Fleming agrees to such a relationship as reflected in a separate writing.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or (b) promoting, marketing or recommending to another party any transaction or matter addressed herein.
THIS ELECTRONIC MAIL TRANSMISSION AND ANY ATTACHMENTS MAY CONTAIN PRIVILEGED, CONFIDENTIAL, OR PROPRIETARY INFORMATION INTENDED ONLY FOR THE PERSON(S) NAMED. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR THE AUTHORIZED REPRESENTATIVE OF THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISTRIBUTION, COPYING, OR DISCLOSURE OF THIS COMMUNICATION IS STRICTLY PROHIBITED

*Candace is available to respond to emails and phone calls between the hours of 7:00 a.m. and 3:00 p.m.  If you have an urgent matter outside that time period, please call our office at the number below.

[cid:image002.png at 01D87787.DC308FD0]
Top Ranked Law Firm for 2015 by Fortune Magazine and American Lawyer Media
Candace Wilkerson  | Senior Associate  |  Wong Fleming

10675 Willows Road NE, Suite 250  |  Redmond, WA 98052
Phone: 425.869.4040  |  Fax: 425.869.4050
cwilkerson at wongfleming.com<mailto:cwilkerson at wongfleming.com>

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Before proceeding, please note: If you are not a current client of Wong Fleming, please do not include any information in this e-mail that you or someone else considers to be of a confidential or secret nature. Wong Fleming has no duty to keep confidential any of the information you provide. Neither the transmission nor receipt of your information is considered a request for legal advice, securing legal services or retaining a lawyer. An attorney-client relationship with Wong Fleming or any lawyer at Wong Fleming is not established until and unless Wong Fleming agrees to such a relationship as reflected in a separate writing.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or (b) promoting, marketing or recommending to another party any transaction or matter addressed herein.
THIS ELECTRONIC MAIL TRANSMISSION AND ANY ATTACHMENTS MAY CONTAIN PRIVILEGED, CONFIDENTIAL, OR PROPRIETARY INFORMATION INTENDED ONLY FOR THE PERSON(S) NAMED. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR THE AUTHORIZED REPRESENTATIVE OF THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISTRIBUTION, COPYING, OR DISCLOSURE OF THIS COMMUNICATION IS STRICTLY PROHIBITED

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Brent Williams-Ruth
Sent: Friday, June 3, 2022 4:19 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>>
Subject: [WSBAPT] Referral Requested: Trust needed to hold proceeds during divorce

Greetings Listmates -

I have a PC who is in a contentious divorce where Spouse A is attempting to "bankrupt" Spouse B by drawing things out. New demand - will not agree to sell real property until a "trust" has been established that will hold the proceeds until the final decree.

The PC is Spouse B - they will have limited ability to pay up front due to the current situation.

Looking for someone in the Pierce County/King County area. All referrals will be passed along on Monday of next week (June 6)

Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

**EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA 98063

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

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