How Can a Former Spouse or Survivor Assert Entitlement to Surplus Funds Following the Owner’s Death or Divorce?

Connecticut law provides clear procedures for a former spouse or survivor to claim surplus proceeds after a foreclosure sale, estate sale, or court-ordered divorce sale. Understanding the applicable statutes, filing requirements, and deadlines is crucial to securing these funds.

Detailed Answer

1. Surplus Funds After Foreclosure

Under Connecticut General Statutes §49-14, any proceeds from a foreclosure sale that exceed the mortgage debt, interest, and sale costs constitute a surplus. Eligible claimants include the former owner, a former spouse, or any person with a legal right to those funds.

1. Confirm the foreclosure judgment and sale date in the Superior Court where the action was filed.
2. Within six months of the clerk’s deposit of sale proceeds, file a verified petition in that court. See CGS §49-14: https://www.cga.ct.gov/current/pub/chap_828.htm#sec_49-14.
3. Attach documents establishing your entitlement, such as a divorce decree, marriage certificate, or assignment of rights.
4. Serve all parties in accordance with Superior Court Rules.
5. Appear at the hearing. If the court finds you entitled, it will order payment from the court registry.

2. Surplus from Court-Ordered Divorce Sales

When a divorce decree under CGS §46b-81 orders the sale of marital property, any sale proceeds above liens and costs become surplus to the parties’ use.

1. Review the divorce decree for specific provisions on sale proceeds.
2. File a motion for distribution with the same Superior Court that handled the divorce.
3. Attach a certified copy of the decree, the sale closing statement, and lien payoff information.
4. The court will enforce its original order and allocate the surplus per the decree’s terms.

3. Surplus from Probate Estate Sales

If an executor or administrator sells estate real property for more than debts and expenses, Connecticut probate law governs the distribution of any remaining funds.

1. Under CGS §45a-282, the personal representative must distribute estate assets according to the will or intestacy rules.
2. If surplus funds remain, an interested party (including a surviving spouse) may petition the Probate Court for distribution. See CGS §45a-287: https://www.cga.ct.gov/current/pub/chap_815a.htm#sec_45a-287.
3. File a motion in the decedent’s probate file, attaching the death certificate, marriage certificate, letters testamentary or administration, and sale accounting.
4. The Probate Court will review and order payment of surplus funds to entitled claimants.

Helpful Hints

• Act quickly. Statutory deadlines in foreclosure and probate claims are strict.
• Gather key documents: divorce decree, death certificate, marriage license, foreclosure and sale records.
• Review your rights under CGS §§49-14, 46b-81, 45a-282, and 45a-287 before filing.
• Consider consulting a Connecticut attorney if disputes or objections arise.
• Maintain copies of all filings, proofs of service, and court orders for your records.