Washington Supreme Court rules that Divorcing Father has priority over Bank in Home Sale
It is not everyday that the Washington Supreme Court reviews a family law case. Yet, recently the Court issued an opinion that could affect the way funds are distributed in a complex divorce. While the facts of this case are very specific, I highlight it show how a divorce can become very complicated very quickly.
I’ll summarize the facts. The couple got married, opened a business and bought a house. Four years later, they filed for divorce. In the time between filing for divorce and final resolution, the couple separately filed for bankruptcy.The bankruptcy put a halt on the divorce finalization and the division of the assets were set aside.
It took three years to clear up the bankruptcy. In the meantime, the business closed and the bank came after the wife for loan she had on the business. Between the bankruptcy, divorce, and debt collection proceedings there were several collectors knocking at the door and complicating finalization of the divorce.
The question the Washington Supreme Court had to answer this question: does the bank get to collect the money from the house sale before the divorcing husband? I won’t get into gritty legal details but the result was that the husband had priority and first bite the money from the sale of the house.
My take-away from this case is that divorces can be very complicated. This one took almost 10 years. While you may not “lucky” enough to be fighting over a million-dollar house, many couples are juggling similar problems like a declining relationship, foreclosure, and bankruptcy.
Getting some simple advice from a attorney at the start will make the process much easier, save you headaches, and allow you to move on. 
Goldberg Jones has experience working with clients from all financial situations. From high-asset divorces to those facing foreclosure, we will work to make sure your rights are protected. In any case, if you have questions about divorce we are willing to answer them over the phone for free. Consider calling us at: (206) 448-1010
If you are really interested in the Washington Supreme Court Case, the citation is:
Bank of Am., N.A. v. Owens, 84044-0, 2011 WL 5084586 (Wash. Oct. 27, 2011)