Estate of Gordan, 2004 ME 23

Summary

The Maine Supreme Judicial Court held that a divorce judgment and settlement agreement did not immediately sever the parties’ joint tenancy in real estate because the agreement contemplated a future quitclaim deed and was silent on immediate severance. The surviving former spouse therefore retained the property by survivorship but remained personally obligated to fulfill the settlement agreement. The court also vacated a default judgment against the estate, finding good cause for the failure to appear and a meritorious defense to the creditor’s deficiency claim based on the commercial reasonableness of the collateral sale.

Holdings

1. A divorce judgment and settlement agreement providing for a future sale or disposition of real estate, while silent regarding whether the property remains in joint tenancy pending that disposition, do not presumptively effect an immediate severance of the joint tenancy. The divorce judgment here did not transform title from joint tenancy to tenancy in common.
2. The estate demonstrated good cause to set aside the default and default judgment because it had a good excuse for failing to appear and presented a meritorious defense to the deficiency claim.

Questions Presented

1. Whether the divorce judgment and incorporated settlement agreement immediately severed the parties' joint tenancy in the Raymond real estate.
2. Whether the estate showed good cause for relief from the default and default judgment entered on Banknorth's deficiency claim.

Disposition

reversed_and_remanded