In Re Thelma v. Spirtos, Debtor. Thelma v. Spirtos v. Irene Moreno, as Guardian "Ad Litem" for Raymond Guerena

I.

The facts of this case are undisputed. Thelma Spirtos and Dr. Basil Spirtos were married on June 13, 1954. Basil delivered Irene Moreno’s son, Raymond Guerena, in 1977. Guerena was born with brain damage. Irene Moreno, as guardian ad litem for Raymond Guerena, sued Basil Spirtos for medical malpractice. Irene Moreno et al. v. Beverly Hospital et al., Case No. C242972. Thelma and Basil separated on September 10, 1982. In December 1982, Thelma filed for divorce in California. On April 18, 1983, Moreno recorded a judgment against Basil in California Superior Court for $826,000 (the “Moreno judgment”). Thelma and Basil entered into a marriage settlement agreement (“MSA”) which was incorporated into a final judgment of dissolution in early 1984.

Pursuant to the MSA, Thelma and Basil each agreed to take their share of community property “subject to any existing encumbrances thereon.” Each agreed to indemnify and hold the other harmless from and against any and all obligations assumed and expenses imposed, suffered or asserted against the other by reason of the encumbrances. Basil and Thelma agreed that the Moreno judgment was a community debt. Each agreed to assume an undetermined…