Wave-induced liquefaction in seabed may adversely impact the stability and bearing capacity of the foundation elements of coastal structures. The interaction of wave, seabed, and structure has been studied mostly for only mildly sloping seabed using a decoupled approach. However, some of the marine hydrokinetic devices (MHKs) may be built on or anchored to the seabed with significant steepness. The wave-induced response and instantaneous liquefaction within sloping seabed supporting a small structure (representing a small MHK device) are evaluated herein by developing an almost fully coupled finite element model. The effects of coupling approach on the stress response and liquefaction of the seabed soils are investigated. Subsequently, post-liquefaction deformation of seabed soils around the structure is assessed. The poroelasticity equations governing the seabed response coupled with those for other domains are solved simultaneously. For post-liquefaction analysis, the soil is modeled as elastic-perfectly plastic material. The development of instantaneously liquefied zones near the foundation is studied in terms of seabed steepness and wave parameters. The changes in the effective stress paths due to the development of liquefied zones are evaluated in view of the soil's critical state. The results indicate that the decoupled solution yields significantly larger stresses and liquefaction zones around the structure. The seabed response and the liquefaction zones become smaller for steeper slopes. The presence of liquefied zones brings the stress state closer to the failure envelope, reduces the confining stresses, and induces larger plastic strains around the foundation element.