[WSBAPT] Insolvent Intestate Estate Intersection with Family Law

[Mark Anderson]

Performance on the HELOC remains secured by an encumbrance on the real property owned by the Decedent's ex-spouse.  I think the death of the Decedent now places the burden on the ex-spouse to pay the bill or refinance to avoid foreclosure.

I just thought I would check in case there other considerations that I need to… consider.

Thanks for the input.

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<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
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From: Andrekita Silva <ak at seattle-silvalaw.com>
Sent: Saturday, December 13, 2025 4:13 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Cc: Mark Anderson <marka at mbaesq.com>
Subject: Re: [WSBAPT] Insolvent Intestate Estate Intersection with Family Law

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<mailto: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<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com> [1<http://www.mbaesq.com/>]

CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use
of the individual named recipient. It may be protected by the
attorney-client privilege, work product doctrine, or other
confidentiality protection. If you are not the intended recipient, or
the person responsible to deliver it to the intended recipient, be
advised that any dissemination, distribution, or copying of this
communication is prohibited. If you have received this transmission in
error, please immediately notify the sender via e-mail or by telephone
at (253) 327-1750 that you have received the message in error, and
then delete it. Thank you.



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