Smith v. Smith (In re Smith)

MEMORANDUM DECISION

A trial of this adversary matter was held on August 28, 1998. Plaintiff Carol S. Smith appeared with Dennis K. Cowan, Esq., and debtor and defendant William Roy Smith appeared with Byron Lee Lynch, Esq. Having considered the evidence and written and oral arguments, as well as the proposed findings of fact and conclusions of law lodged on November 25, 1998, the court concludes the obligations of the debtor to the plaintiff are nondischargeable in bankruptcy.

I. Facts

The parties are separated spouses. Prior to the filing of the debtor’s chapter 7 petition, the superior court entered a judgment of legal separation on January 6, 1997. That judgment also preliminarily divided the community property of the parties. The debtor received most of the community property, including the former marital home located at *794 12124 East Stillwater, Redding, California (the “residence”), and was ordered to pay to the plaintiff an equalizing payment of $58,-058.19.

The award of the residence to the debtor, however, was expressly contingent upon the equalizing payment being paid to the plaintiff. Until paid, record title remained in the name of both parties. If not paid, the…