What happens to proceeds of family home sale if no agreement has been reached on finances?

[WinterSunyyyyy]

Just this. Putting up family home for sake (ex has moved out and i can’t afford to keep it on) but we are yet to reach an agreement on the split of equity. What happens if we manage to sell the property pending agreement on the equity? Do solicitors hold onto the money and release once agreement reached? Thank you

Yes, I think solicitors hold onto the money until a decision has been made.

Why sell the house before finances are agreed?

I know when my partner split from his ex .. she wanted more from the same and he wouldn't agree. Solicitor told him that if they can't agree it would be held until a court could address it for them. He panicked as needed the equity for his new home (and needed to complete in 28 days to port existing mortgage and get his buy out payment back). She eventually agreed half each

.

Because she can't afford it....

It will be held in a solicitors trust account. Probably the one that you use for conveyancing on the house sale. Something to ask

your solicitor when you get home sale contracts done. I expect it won't be an unusual request.

You should make it very clear in writing that it can't be given to either of you until there is a formalised agreement that you've both signed or until there is a court order for equity shares, sort of like bank accounts that are 2 to sign.

My solicitor told me they don’t like to hold the money for more than a day or two.

Presumably it is jointly owned and you both have agreed to put it up for sale as im not sure one party can unilaterally do that without the other's consent.

When i was divorcing, the house was put up for sale straight off by mutual agreement but houses obviously can take time to sell. Really though you want to be focusing on getting a financial consent order agreed once you have that house up for sale. I wouldn't want my money held up in a solicitors account personally for too long. You want it in your own really. Have you been trying to reach financial agreement for long?

stbx walked out over a week ago - has gone to live in his family’s home overseas. Refuses to confirm what he will contribute to mortgage, stopped contributing to child care.Stating that he will give up work due to ‘mental health’ issues and to look after his son (not mine). Now repeatedly emailing me to sell or let out as neither of us can afford to keep it alone. He owns property 60%, I own 40%. Been told by lawyers that I should get at least 50 or even 60% of equity upon sale given our needs and his superior earning capacity. He doesn’t know yet that o will be disputing the share of equity.

i have been advised not to to do mediation with him until we have exchanged form e due to his propensity to lie and abusive behaviour (there is NMO in place)…mediation would be hybrid rather than classic.

Do you know what all the assets of the marriage are worth? Including everything your partner holds - pensions, stocks and shares, savings? Has there been full and frank financial disclosure? Best to seek legal advice before selling an asset (links to info and free legal advice below).

As I understand it there are 2 aspects – Divorce and Financial Settlement.
To know what a fair split of assets is and to reach a financial settlement divorcing parties need to know what the assets of the marriage are, and what each asset is worth.

Look at a Form E. A long document in which each party sets out their assets, income, and financial needs. You can see in it the assets that are taken into consideration upon divorce and financial settlement, for example property (the former marital home), pensions, stocks and shares etc. It also lists the documents needed that show the value of assets for example CETVs (cash equivalent transfer values of pensions - which can be requested from pension providers).

Following Form E each party sends the other questionnaires to get any essential / missing financial information and then deficiencies (questions on anything still missing).

To find out what some assets are worth an independent expert can be used. Property can be valued by an expert - estate agents, pensions by CETV and / or a pension on divorce expert (PODE) report and so on. It is important to decide what needs a valuation by an independent expert and factor in the costs of these. Pensions can be very valuable – equivalent or more than the value of the former martial home in some cases. Divorcing parties might hold different types of pensions (not like-for-like, so difficult to compare without an expert). Circumstances might be complex for example an age difference or pensions in payment. One party may have stayed at home to look after children.

@AnnaMagnani and @silentpool made some useful comment on this in this thread

www.mumsnet.com/talk/divorce_separation/4664756-what-do-i-need-to-do-about-our-pensions?reply=121093079
When splitting the assets of a marriage…
www.legislation.gov.uk/ukpga/1973/18/section/25 applies

The income, earning capacity, property, and other financial resource which each of the parties to the marriage has or is likely to have in the foreseeable future. As I understand it, first consideration is given to the welfare (while a minor) of any child of the family who has not yet attained the age of eighteen. The needs of each divorcing party are taken into account and as I understand it 50 / 50 is the starting point – so unequal shares based on circumstances and needs is possible, for example 60 / 40.

These offer a free advice session about pensions on divorce and separation www.moneyhelper.org.uk/en/family-and-care/divorce-and-separation/divorce-or-dissolution-how-we-can-help-with-your-pension
Free advice line (busy so keep trying) rightsofwomen.org.uk

Guides on divorce and financial settlement
www.advicenow.org.uk/guides/how-apply-financial-order-without-help-lawyer

Pensions on divorce
www.sharingpensions.co.uk/penaudit3.htm
www.mediateuk.co.uk/the-ultimate-guide-to-pensions-on-divorce/
www.nuffieldfoundation.org/news/new-good-practice-guide-addresses-shortfall-in-understanding-of-how-to-treat-pensions-on-divorce

Valuation of pensions – pensions on divorce expert report
www.collinspensionactuaries.co.uk no relation – useful website
www.collinspensionactuaries.co.uk/pension-data-collection/ templates for information required

Hope this is helpful. Caveat – this is not my profession.
Legal advice should be sought.

This link gives you an indication of hourly rate for solicitors
www.gov.uk/guidance/solicitors-guideline-hourly-rates

Some organisations offer free advice from solicitors and barristers rightsofwomen.org.uk/get-advice/ On their FAQs page…”Our Legal Officers and Volunteer legal advisors are all solicitors and barristers”.
Some family solicitors offer an in initial free consultation and some a fixed fee rather than hourly.
Some barristers can be directly instructed e.g., via Clerksroom Direct

Mumsnet suggest www.advicenow.org.uk/divorce-and-separation

Re Mediation - in some cases mediation is not appropriate (domestic abuse)

assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/489125/family-mediation-leaflet-press.pdf

You will need to show the court that
a) you have been to a MIAM to find out about mediation, or
b) you don’t need to do this because of special circumstances which are listed in section 11 of form C100.
Special circumstances include cases involving domestic violence or child abuse, which may not be right for mediation – the mediator can advise you on this at the MIAM or first meeting. Alternatively, if you have evidence of domestic violence or child abuse you may not need to go to a MIAM and may be able to get Legal Aid to pay for a solicitor to help you bring your case to court.

@infohere - thank you so much!
yes I have an exemption for the mediation but ex wants toto try hybrid mediation…I’m not convinced how it will work if there is no disclosure on his part.

…so waiting for divorce to be issued, then filing financial application and will request disclosure

resolution.org.uk/looking-for-help/splitting-up/your-process-options-for-divorce-and-dissolution/hybrid-mediation/

Both of the separating couples are seen separately by the hybrid mediator to assess whether or not hybrid mediation and, indeed, mediation is appropriate and will look very carefully at issues such as safeguarding.
As part of the same assessment meeting, the individual separating couple will consider whether they think hybrid mediation is best for them.

Do look after the (older) woman you will become when negotiating a financial settlement (including pensions if any) and remember that for the financial settlement aspect the court requires full and frank disclosure from both parties.

The purpose of full and frank disclosure is to get all the assets of the marriage on the table - and to know what each of them are worth - before deciding what the split could be, and what the final financial settlement will be.

This ensures that there can be a fair settlement.

Look also at Section 25 - The factors the court will take into account when deciding how to distribute assets on a divorce or dissolution.

images.ctfassets.net/o8luwa28k6k2/2cpp2mEMwBJWJLuzTiTruB/b5397e7459154fad8927826a2c99acdd/section-25-expert-guide.pdf

The section 25 legislation is here (the pdf in my previous post summarises it) www.legislation.gov.uk/ukpga/1973/18/section/25

@infohere many thanks.
so right about looking after myself in ‘old age’ - I am in my mid 40s so relevant!