[WSBAPT] Insolvent Intestate Estate Intersection with Family Law

[Andrekita Silva]

Law Office of F. Andrekita Silva
______________________________________________________________________________________________________________________________  

December 13 2025

Mark,

I have  not had this scenario. Generally, however, I would say that the allocation of community debt to one spouse by the court is not binding on third party creditors. 
So, if the debt being paid by deceased ex-H was a community debt, a third party creditor should be able to access the community portion of equity in the home.  If the divorce was a long time ago, possible ex-wife who was awarded home has built up a separate property equity?

I believe that the idea is to not  prejudice community creditors by giving an asset to one party, then having the court- obligated debtor spouse default. Otherwise, a divorcing couple could collude against third party creditors.

That is why it is so important for a divorce decree to require refinance where ever possible- or certainly within a reasonable period of time. Hopefully, that wasn't a judicial ruling but an agreed decree by the parties. A judge should know better. The wife could try to refinance or do something to pay the secured debt so that she can keep the house from being taken from her. Otherwise, I believe the creditor can sell the house, take what is owed to them, and  then give her whatever is left over- if there is anything left over. 

Andrekita Silva
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 940
Seattle, Washington 98101-2509
206-224-8288
ak at seattle-silvalaw.com

On 2025/12/12 14:57, Mark Anderson wrote: 

> Dear All: 
> 
> Client is the sister of a Decedent who passed away without a will. 
> Decedent was paying on a HELOC secured by a deed of trust on real
> property that had been awarded to his ex-spouse in their divorce. 
> Decedent's debts far exceed his apparent assets. 
> 
> I usually deal with solvent estates without family law complications. 
> Who of you has seen this scenario before and would be willing to
> either take on the Client or provide some practice tips? 
> 
> Thanks much.  Happy Friday! 
> 
> Mark B. Anderson
> ANDERSON LAW FIRM PLLC
> 821 Dock Street, Suite 209, PMB 4-12
> Tacoma, Washington 98402
> +1 253-327-1750
> +1 253-327-1751 (fax)
> marka at mbaesq.com
> www.mbaesq.com [1] [1 [2]] 
> 
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