The Oklahoma Supreme Court rules that a lien on a homestead held in joint tenancy is extinguished following the debtor joint tenant's death because the creditor was barred from executing on the lien prior to the death. Toma v. Toma, (OK 52,No. 102801,2007).
Timothy Toma obtained a judgment in Ohio against Charles Toma's interest in the Oklahoma homestead that Charles held in trust with his wife, Claire. The judgment was filed in Oklahoma but Timothy did not attempt to execute on the judgment lien because of constitutional and statutory prohibitions against the forced sale of homestead property. Subsequently, Charles and Claire conveyed the property from the trust to themselves as joint tenants with rights of survivorship.
Following Charles's death, Timothy attempted to execute the lien. Claire sought a declaration that Timothy's interest in the property was extinguished because the joint tenancy was never severed during Charles' life by an attempted execution on the lien, and Charles's joint tenancy interest, to which the lien was attached, ceased to exist when he died. The trial court found that Timothy still possessed a valid judgment lien on the property.
The Court of Civil Appeals reversed, holding that a lien on joint tenancy property is extinguished if the creditor fails to execute on the lien before the death of the debtor joint tenant. Timothy petitioned for certiorari on the issue, arguing that he was prohibited by Oklahoma law from executing on his judgment lien against Charles's interest because the property to which his lien attached was homestead property, creating an exception to the general rule that a lien on joint tenancy property is extinguished if the creditor fails to execute on the lien before the death of the joint tenant.
The Oklahoma Supreme Court affirms, holding that judgment liens become enforceable only when the property to which they are attached is no longer used as the homestead. "Because the lien was extinguished when Charles' interest was extinguished," the court writes, "Timothy's opportunity to execute on his lien never arose."
For the full text of this decision, go to:https://www.oscn.net/applications/oscn/deliverdocument.asp?cite=2007+OK+52.
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