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IN RE WEBBER, (Bankr.D.Mass. 2002)
CAROL J. KENNER, United States Bankruptcy Judge
A prepetition Judgment of Divorce Nisi obligates Debtor Russell Webber to transfer to Donna Webber his interest in the real property that was their marital home; and it obligates Donna to sell or refinance the property by July 15, 2005 and, from the proceeds, to pay Russell $61,559 — representing one-half of the net equity in the property as of the time of the nisi judgment — plus interest. Donna now seeks relief from the automatic stay to exercise her rights under the nisi judgment with respect to the real property — that is, to secure transfer of the Debtor's interest in the property to her. The Debtor supports the motion, and the Chapter 7 Trustee, Kathleen Dwyer, does not object, provided only that the granting of such relief is without prejudice to the estate's rights as to the Debtor's interest in the real property (or the proceeds thereof).
The Trustee contends that the proceeds due the Debtor under the divorce judgment are nonexempt property of the bankruptcy estate. The Debtor contends the proceeds are his by virtue of his Massachusetts homestead exemption. And, though Donna seeks a determination that, whether the Debtor's share is exempt or not it is subject to setoff for amounts that the Debtor owes her for child support and related obligations.
Because the granting of relief from the automatic stay does not entail an adjudication of the parties' rights with respect to the property and its proceeds, see Grella v. Salem Five Cents Savings Bank, 42 F.3d 26 (1st Cir. 1994) (adjudication of motion for relief is not a preclusive determination on merits of underlying substantive issues), the Trustee's concern is satisfied. The Court concludes that the motion states cause for relief from the automatic stay to permit Donna Webber to exercise and enforce her rights under the divorce judgment, and an order will enter accordingly. It shall be understood that the order granting relief from the stay shall not constitute an adjudication of the rights of the various parties' with respect to the property or its proceeds. The Court will address separately the Trustee's objection to the Debtor's homestead exemption.
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