Did Chad Daybell really give his lawyer a house?

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December 24, 2020

It’s Christmas Eve, and this case is the gift that keeps giving.

Yes, Chad Daybell really DID give John Prior a house. Most will probably find this shocking, but in the legal community, it’s not that unusual.

It’s no secret that legal fees can add up. The average divorce in the United States costs $15,000. A 2010 study done by Iowa State University put the cost of a murder trial at $17.5 million for each defendant. That cost includes every aspect of a murder case, including the investigation costs, scientific testing, court time, and the salaries and fees for all the judges, court staff, lawyers, and law enforcement. Attorney fees for defending a murder case can quickly reach a million dollars.

The information about Chad and Lori’s finances is spotty. We know that Chad received $430,000 from Tammy’s life insurance. We’ve also seen bank records that show Chad had about $180,000 in the bank when he left Hawaii. We do not know if Lori had money. We know she didn’t receive money when Charles Vallow died. Shortly before his death, Charles changed the beneficiary on his million-dollar life insurance policy from Lori to his sister, Kay Woodcock. There has been speculation that Tylee received the proceeds of her father’s life insurance. Lori’s friend from Hawaii, April Raymond, remembers Tylee telling everyone she was a rich girl after Joe’s death. We don’t know how much Tylee Ryan received from life insurance when her father died and whether Lori had access to those funds as Tylee’s parent. It’s doubtful a 17-year-old girl had a will, and by law, the assets of an unmarried child would go to their parents and siblings upon their death. We know that the only other asset of any value that Chad owned was the home he shared with Tammy and his children. We also know that neither could pledge sufficient cash and assets to secure their $1 million bails.

So how does a person with limited assets secure the services of a lawyer? The answer is, you promise the lawyer an asset in return for his services. Sometimes that means giving the lawyer a lien against your property, or in this case, giving him the house outright. If you give an attorney a lien against your property, that lien must be paid before the property can be sold or transferred.

According to Zillow, Chad’s property is worth about $300,000. But how much of that could Chad access? Idaho is a community property state. That means that at the time of her death, Tammy owned one half of the value of the property. Nearly 70 percent of people in America do not have wills. If, as is likely, Tammy died without a will, the intestate succession laws in Idaho require that her share of the property pass to her spouse. Idaho has a “Slayer Statute, “which can be found at Idaho Code § 15-2-803, which forbids a murderer from inheriting from their victim. The catch: there must be proof that the beneficiary murdered the victim. In Chad’s case, there are presently no charges and no clear proof that Chad killed Tammy. That means that Chad was the sole owner of the property when he deeded it to his attorney, John Prior.

If there is a mortgage on the property, it must be paid out of the sale proceeds if the property is sold. Mortgages are attached to the home and go with the property even if ownership changes, so Prior would have to pay the mortgage off if he sells the property. The amount left after the mortgage and any other liens are paid is called the net equity, and it’s that net equity that Chad gave Prior in place of fees. The transaction occurred in October, which means that’s when Chad was out of money. Indeed, Chad’s $180,000 that he had when he came back from Hawaii was quickly eaten up by attorney fees for both Lori and himself.

Lori would not have had any interest in Chad’s home, even though they were married. Under Idaho law, the property a spouse owned before the marriage remains their separate property. It’s only property acquired during the marriage that is subject to community property laws.

We don’t know what Chad’s agreement was with John Prior, so we can’t say what might happen when murder charges are filed. Neither John Prior nor Mark Means is certified to represent defendants in capital cases, so they would likely be appointed a state-certified defense team. It’s possible Prior could remain on the team as co-counsel. Although Prior is not certified to act as co-counsel, he probably could easily become certified with his experience. Mark Means, on the other hand, is far from meeting the qualifications.

Merry Christmas, Y’all – let’s break out the eggnog!

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