Date of Decision:
March 23, 2007
Whether Debtor and her former husband‛s temporary reallocation of equity in their marital home pursuant to a property settlement in their pre-petition divorce was subject to the case trustee‛s hypothetical lien under 11 U.S.C. § 544(a)(1) where the equity transfer was not recorded with the county register of deeds?
The case trustee‛s hypothetical lien under § 544(a)(1) on the equity in the marital home was superior to the former husband‛s temporary interest received in the pre-petition divorce where the divorce decree and attendant property settlement were not recorded with the county register of deeds and where no provision of the divorce decree and attendant property settlement constituted a money judgment owed by Debtor to her former husband that became a statutory judgment lien on the marital home.
Full Bankruptcy Court Decision: