In Re Earnest James Pederson, Debtor. Bonnie Jean Stedman v. Earnest James Pederson

875 F.2d 781 57 USLW 2727 , 19 Bankr.Ct.Dec. 604 , Bankr. L. Rep. P 72,925 In re Earnest James PEDERSON, Debtor. Bonnie Jean STEDMAN, Appellant, v. Earnest James PEDERSON, Appellee. No. 87-4319. United States Court of Appeals, Ninth Circuit. Argued and Submitted Feb. 6, 1989. Decided May 30, 1989. M. Kathryn Lee, Bellingham, Wash., for appellant. Peter H. Arkison, Bellingham, Wash., for appellee. Appeal from the Ninth Circuit Bankruptcy Appellate Panel. Before REINHARDT, KOZINSKI and TROTT, Circuit Judges. KOZINSKI, Circuit Judge: 1 In a marriage dissolution proceeding, a state court awarded Earnest James Pederson certain real property, subject to a lien in favor of his former wife, Bonnie Jean Stedman. We consider whether Pederson is entitled to avoid this lien pursuant to 11 U.S.C. Sec. 522 (f)(1) (1982) of the Bankruptcy Code. Facts 2 Bonnie Jean Stedman and Earnest James Pederson were married on September 6, 1984. Their happiness together was short-lived. Only twelve months later, in September 1985, Stedman filed for divorce. In due course, the state court entered a decree of dissolution which also disposed of such property as had accrued during the marital relationship.…

I dissent. I would follow Boyd v. Robinson, 741 F.2d 1112, 114-15 (8th Cir.1984), and reverse. Although the majority presents a strong argument for its position, I would give the state court decree a far less mechanistic construction. The division of property rights that Boyd envisions seems eminently sensible to me. Perhaps that is an unfair standard. In any event it is difficult to see how reaching a conclusion opposite to that reached by my colleagues does violence to any “policy judgment made by the political branches of government”.

In a marriage dissolution proceeding, a state court awarded Earnest James Peder-son certain real property, subject to a lien in favor of his former wife, Bonnie Jean Stedman. We consider whether Pederson is entitled to avoid this lien pursuant to 11 U.S.C. § 522 (f)(1) (1982) of the Bankruptcy Code.

Facts

Bonnie Jean Stedman and Earnest James Pederson were married on September 6, 1984. Their happiness together was short-lived. Only twelve months later, in September 1985, Stedman filed for divorce. In due course, the state court entered a de *782 cree of dissolution which also disposed of such property as had accrued during the marital relationship. Because Pederson had entered the marriage owning the home in which the couple lived, the court awarded him title to it. In recognition of the fact that certain improvements had been made to the home out of the marital community, however, the court awarded Stedman an $8,000 judgment against Pederson, said judgment to run as a lien against the real property. The court did not award alimony, support or maintenance to either spouse.

The dissolution decree was entered on July 3, 1986. Less than three weeks later, on July 22, Pederson…