The removal of your wife's name from the deed should have been effectuated at the time your divorce was finalized. Did you question your attorney as to why such a significant task was not finalized at the time if your divorce? With her not being local you may have a large task on your hands.
Small Claims Court in New York City for example has monetary jurisdiction up to $5,000 however before you jump the gun you should be confident that you are right and entitled to the return of the escrow money because if you have a weak case and go it alone without proper legal representation you not only risk losing but your damages could compound themselves in a counter-claim.
Provided that what you said is correct, as to who her share should "pass on to". Keep in mind, if she left a Will then this would govern who takes. If not, then the laws of intestacy would govern. It is a good idea to "confirm" the rightful owners by virtue of a Deed, but be certain that the rightful owners are just that: "the rightful owners".