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Old 05-01-2004, 11:18 AM
poulins
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Does refinancing mandate payment of old divorce decree spousal lien?


My mother was divorced 30 years ago. In her divorce decree there was a $6000 judgement that she would need to pay if the property was sold or ownership was transferred. Last year she refinanced her house. During the refi a lawyer was hired to do a title search and search for liens. He found nothing on file (either her ex-husband didn't file it with the city or the lawyer missed it). In any event, he didn't find anything and the refi was completed. A year later her ex-husband found out about the refi and has filed suit for payment of the $6000 claiming that the refi triggered a change in ownership. The house was in her name only prior to the refi and was in her name only after the refi.

Does she have to pay the $6000 now, or can she wait until she truly sells the house? Any supporting case law anyone can point to would be incredibly helpful.
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Old 05-01-2004, 11:33 AM
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Quote:
Originally Posted by poulins
My mother was divorced 30 years ago. In her divorce decree there was a $6000 judgement that she would need to pay if the property was sold or ownership was transferred. Last year she refinanced her house. During the refi a lawyer was hired to do a title search and search for liens. He found nothing on file (either her ex-husband didn't file it with the city or the lawyer missed it). In any event, he didn't find anything and the refi was completed. A year later her ex-husband found out about the refi and has filed suit for payment of the $6000 claiming that the refi triggered a change in ownership. The house was in her name only prior to the refi and was in her name only after the refi.

Does she have to pay the $6000 now, or can she wait until she truly sells the house? Any supporting case law anyone can point to would be incredibly helpful.



My response:

You didn't tell us your State name.

However, since there was no lien filed against the property, judgments have an "expiration" - - usually 10 years, and are renewable if application is made therefor. If your father can prove that there was a "lien" on the property, and your mother's attorney made a mistake, then she's on the hook. But, if it's just a judgment, then she may have a solid defense to his lawsuit.

Does your father have an attorney filing the lawsuit, or is he doing this on his own?

IAAL
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