Klemme v. Schoneman
In Klemme v. Schoneman, 165 Wis. 2d 250, 477 N.W.2d 77 (Ct. App. 1991), the Court addressed whether a stipulation in a divorce action granted a mortgage interest in property that could not be discharged in bankruptcy.
The Court rejected the argument that a mortgage required a formal document and instead looked to see if the stipulation had the characteristics of a classic mortgage. See Klemme, 165 Wis. 2d at 259-60.
The Court noted that the Klemme stipulation contained the following "mortgage ingredients":
(1) the conveyee's interest was expressed as a lien;
(2) the lien attached to specific property;
(3) the lien was a guarantee that a certain sum of money would be paid;
(4) interest was earned on the debt;
(5) the debt had a due date. See Klemme, 165 Wis. 2d at 258-59.