How to Claim Surplus Funds After Death or Divorce in Rhode Island

1. Detailed Answer

In Rhode Island, surplus funds can arise when a court-ordered sale of mortgaged real estate, a chattel foreclosure, or the settlement of an estate in probate yields money beyond outstanding debts and costs. A former spouse or survivor may have a legal right to those surplus funds. Follow these steps to assert your entitlement:

Step 1: Identify the Source and Custodian of Funds

Real estate foreclosure: After a judicial sale, the court’s commissioner holds any surplus under R.I. Gen. Laws § 9-27-7.
Chattel foreclosure: When a chattel mortgage sale produces excess, the mortgagee holds the surplus in trust per R.I. Gen. Laws § 34-11-25.
Probate estate: Surplus assets become part of the decedent’s estate and pass under the probate code (R.I. Gen. Laws § 33-15-1 and following sections).

Step 2: Gather Required Documentation

Certified copy of the divorce decree showing property division or survivor’s share.
Death certificate and marriage certificate (for former spouse status at time of death).
Court sale or probate docket entries reflecting the surplus amount.

Step 3: File a Claim or Petition

Depending on the fund custodian, you must:

With the court commissioner: File a written petition or motion in the Superior Court session where the foreclosure occurred. Include your supporting documents and a proposed order directing payment of the surplus. Serve all parties per the Rhode Island Rules of Civil Procedure.
With the mortgagee: Submit a written demand for the surplus along with proof of your entitlement. The mortgagee must hold the funds for one year. If unclaimed, they remit it to the State Treasurer.
In probate: Petition the probate court to include the surplus in the estate distribution and request payment to you, as a former spouse or surviving spouse, consistent with R.I. Gen. Laws § 33-15-7 (spousal share).

Step 4: Attend a Hearing (If Required)

If the claim is contested, the court will schedule a hearing. Present your evidence of entitlement, and respond to any challenges by other interested parties.

Step 5: Obtain a Court Order and Collect Funds

Once the court confirms your right to the surplus, it will issue an order. Present the certified order to the custodian (court commissioner or mortgagee). They will release the funds within the timeframe set by the court or statute.

2. Helpful Hints

Act promptly: statutory deadlines (often one year) apply to claim surplus funds.
Use certified copies of all documents to avoid delays.
Confirm fund status by contacting the Superior Court clerk or mortgagee’s attorney.
Check Rhode Island’s unclaimed property database in case funds have been remitted to the State Treasurer: RI Unclaimed Property.
Consider consulting a Rhode Island attorney if your claim faces objections or complex title issues.