The Washington Court of Appeals, Division II, ruled on November 3, 2026, that Joy Gibbs forfeited her claim to specific bank accounts and restricted stock units (RSUs) awarded to her during her 2021 divorce from William Gibbs. The court affirmed an arbitration award that stripped her of these assets because they remained registered under William’s name when the couple separated for the second time. This decision closes a legal loop that left Gibbs without the financial security she believed the 2021 decree had guaranteed.
The case, In the Matter of the Marriage of William Gibbs and Joy Ann Gibbs (No. 60590-2-II), hinges on a technicality that many divorced couples overlook: the difference between a court-ordered division of assets and the actual transfer of title. In 2021, a mediated settlement awarded Gibbs half of a BNY Mellon 401(k), USAA savings and checking accounts, RSUs, and an interest in Conner's Pretzel and Wine. While she successfully transferred half of the 401(k), the USAA accounts and RSUs stayed in William’s name. When they remarried in November 2022 and separated again roughly eight months later, a new agreement superseded the 2021 decree. The new terms stipulated that each party retains assets held in their respective names. Since the USAA accounts and RSUs were still in William’s title, the arbitrator awarded them to him.
Gibbs attempted to challenge this outcome by seeking a new trial under Superior Court Mandatory Arbitration Rules (MAR) 7.1. The superior court rejected this move, noting the rules had been repealed in 2019 and replaced by the Civil Arbitration Rules. During the hearing, her attorney failed to formally file a motion to vacate the arbitration award, a procedural oversight that sealed the outcome. On appeal, Gibbs argued the arbitrator ignored her ownership rights under the first decree. The appellate panel disagreed, siding with the lower court and awarding William reasonable attorney fees for the appeal.
The only assets Gibbs retained from the shared portfolio were the half of the 401(k) she had already moved to her name and an equal split of the wine collection, which was not registered under either party’s name. They also agreed to divide their ownership interests in three companies, including Conner's Pretzel and Wine, equally. The ruling serves as a stark warning for separating couples: a paper title is not the same as a bank balance. If you are awarded an asset in a divorce, you must initiate the transfer of title immediately. Waiting until a remarriage or a second separation can erase your legal claim entirely.