Los Angeles— O.J. Simpson passed away on Thursday without settling the majority of the $33.5 million judgment a California civil jury had ordered him to pay to the families of his ex-wife Nicole Brown Simpson and her friend Ron Goldman.
Although acquitted in a criminal trial, Simpson was held responsible by jurors in a 1997 wrongful death lawsuit.
With Simpson's passing, the public is likely to gain insight into his financial situation, and the families may have a better chance at receiving the owed amount — if there are assets to claim.
What to expect in the coming months
David Cook, an attorney who has been working to collect the civil judgment for Goldman's family since 2008, expressed, "Simpson died without penance. We don't know what he has, where it is or who is in control. We will pick up where we are and keep going with it."
Regardless of whether Simpson left a will and its contents, his assets will likely undergo the probate process in court before his four children or other designated heirs can access them.
Various states have distinct probate regulations. Typically, the lawsuit is initiated in the state where the individual resided at the time of their passing. In the case of Simpson, that would be Nevada. However, if substantial assets are located in California or Florida, where he also had residences, separate cases might arise there.
According to Nevada law, an estate must go through the judicial system if its assets surpass $20,000, or if any real estate is involved, and this must be completed within 30 days of the individual's death. If the family neglects to submit the necessary paperwork, creditors have the authority to commence the process themselves.
Once the case reaches court, creditors asserting that they are owed money can then pursue a portion of the assets. The Goldman and Brown families will be on an equal footing with other creditors, and likely will have an even stronger claim.
Under California law, creditors holding a judgment lien, such as the plaintiffs in the wrongful death lawsuit, are considered to have secured debt and take precedence over creditors with unsecured debt. They are now in a better position to receive payment than they were prior to the debtor's demise.
Insights from Professionals
Arash Sadat, a property disputes specialist based in Los Angeles, mentions that it is "100%" more advantageous for the claimant when the debtor has passed away and their finances are in probate.
He recounted a jury trial where his firm's clients were awarded $9 million by the jury, only for the debtor to appeal and prolong the process indefinitely.
"He did everything he could to avoid paying this debt," Sadat said. "Three or four years later, he died. And within weeks, the estate cuts a check for $12 million. That's the $9 million plus interest that had accrued over this time."
The executor or administrator of the estate has much more of an incentive to dispense with debts than the living person does. "That's why you see things like that happening," Sadat said.
But of course that doesn't mean payment will be forthcoming.
"I do think it's going to be quite difficult for them to collect," attorney Christopher Melcher said. "We don't know what O.J. has been able to earn over the years."
Neither Sadat nor Melcher is involved with the Simpson estate or the court case.
Contents of Simpson's estate
Simpson said he lived only on his NFL and private pensions. Hundreds of valuable possessions were seized as part of the jury award, and Simpson was forced to auction his Heisman Trophy, fetching $230,000.
Goldman's father, Fred Goldman, the lead plaintiff, always said the issue was never the money, it was only about holding Simpson responsible. And he said in a statement Thursday that with Simpson's death, "the hope for true accountability has ended."
Ensuring that chosen heirs receive assets after death can be achieved through trusts established during a person's life or other methods. An irrevocable trust, in particular, can provide strong protection.
However, transferring assets to avoid creditors may be considered fraudulent. Families such as the Goldman and Brown families can file civil lawsuits to challenge these transfers and bring the assets into dispute.
