[WSBAPT] Divorce & Property Transfers

[Nick Pleasants]

Jane,
Your statement that one spouse was awarded property in a divorce subject to an equitable lien for the other spouse's community property interest does not sound right. The whole point of the divorce proceeding is to divide the community property. The result should be that the Divorce Decree spells out who gets what property, not subject to any lien for the other spouse, but possibly subject to a mortgage (although those often have to be refinanced within a period of time to get the other spouse off the mortgage obligation).
Let's assume the Decree awarded the real estate to your client not subject to any liens. Then the ex-spouse would execute a quitclaim deed to your client.
If ex-spouse refuses to sign a quitclaim deed, you can (a) cite ex-spouse for contempt, or (b) request the court to appoint a commissioner (usually another attorney) under Ch. 6.28 RCW to convey the real estate consistent with the terms of the decree.
If the decree does have that lien language, then I'm not sure the divorce was really settled, as it appears something needs to be resolved as to what ex-spouse's community property interest in the home is valued at.
Best,
Nick

Nicholas Pleasants | Shareholder

[OseranHahnAttyatLaw 8]

11225 SE 6th Street | Suite 100 | Bellevue, WA 98004
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jane Bitz
Sent: Wednesday, April 26, 2023 2:35 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Divorce & Property Transfers

Hi All:

I have never practiced in Domestic Relations law. I now have an estate planning client who was recently divorced and awarded real estate in the divorce decree, subject to an equitable lien for the other spouse's community property interest in the real property. When I research the properties on line, I see that the now divorced spouse is still on title for the properties. The divorce decree was granted in Stevens County and there are properties in both Stevens and Spokane counties that are still jointly in the names of the now divorced couple.

My questions are:
What is the best practice to put these properties into the client's name?
Does the spouse who was not awarded the properties in the property division also have to sign a Quit Claim Deed?
Is there any excise tax issue if there is an existing mortgage on any of the properties?

Thanks for your input.
Jane.

Jane G. Bitz
Of Counsel | Wolff, Hislop & Crockett, PLLC
Helping Good People do Great Things!
12209 E. Mission Ave., Suite 5
Spokane Valley, WA 99206
(509) 927-9700 (Phone)
(509) 777-1800 (Fax)
jbitz at whc-attorneys.com<mailto:jbitz at whc-attorneys.com> [Email]
www.whc-attorneys.com<http://www.wolffandhislop.com/>


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