Gittin 5:1

To repay one who has been damaged, the court takes from a person’s best land (this is a Torah law – see Exodus 22:4). To repay a debt, they take from his average land (a rabbinic enactment to encourage lending to others). To pay for a kesubah, they take from his least-quality land. Rabbi Meir says that a kesubah is also paid from one’s average land.

Gittin 5:2

Damages and debts are not repaid from mortgaged land if the debtor has unmortgaged land. This is so even if the unmortgaged land is his least-quality property. Payments taken from property inherited by the debtor’s orphans are only from the least-quality land.