Washington Appeals Court Lets Megan Mae Coelho Keep Sequim Home, Leaves Ex-Husband on Mortgage

The Washington Court of Appeals, Division Two, on Oct. 27, 2026, affirmed that Megan Mae Coelho would retain the Sequim, Washington, house and the $428,572 mortgage attached to it, a decision made without a refinancing deadline for Coelho.

The couple, who married in 2002 and had seven children, had moved from Wyoming to Washington after securing a $1.5 million business interest payout in 2021. In November 2021, they established an irrevocable Wyoming trust, contributing personal property worth $375,000 and placing their $500,000 Wyoming home into the trust, naming the children as beneficiaries.

Mavy filed for divorce in November 2022, and in August 2024 the trial court awarded Coelho the Sequim home, citing $300,000 in equity. The court also ordered Coelho to pay Mavy $50,000, allowed him to monitor mortgage payments, and required her to indemnify him if creditors pursued him for unpaid debt.

Mavy appealed, arguing that the lower court’s failure to mandate a refinance left him exposed to a loan he no longer owned. The appeals court rejected his claim, stating that the evidence showed little risk and reaffirmed the trial court’s discretion in property division under Washington law. It also dismissed his contempt motion and ruled that his previous challenges to parenting and relocation orders were moot.

The decision means Mavy remains legally responsible for the mortgage until a future agreement or default occurs; Coelho has no obligation to refinance or sell the property within a set period. The ruling also underscores that divorce courts may leave a spouse on a mortgage if safeguards such as monitoring and indemnification are in place.

Amid the legal wrangling, the seven children, now ranging from teenagers to young adults, have been left to navigate the complexities of a trust that still holds their family’s Wyoming property while the Sequim house remains a point of contention in the family’s future.