financial settlement Selling your house before financial settlement is reached

[James]

I was just looking into this myself and thought I would share this information ...

The destination of the money from selling your house before a financial settlement depends on the situation

• Held by a solicitor or third party
  • In most cases, the proceeds won't be directly handed to you or your ex-partner.A solicitor or a designated account will hold the money securely until a financial agreement is reached regarding how it should be divided. This agreement can be a consent order approved by the court or a formal mediation settlement.
    • https://www.soldnest.com/blog/selling-house-during-divorce/
• Used to pay off joint debts
  • If there's agreement, some of the money might be used to settle any outstanding joint debts, simplifying the financial picture during the settlement process.
• Less common scenario
  • In rare cases, if both parties agree completely on the division and there are no complexities, the proceeds might be directly split after accounting for any selling costs. However, this is not the norm and comes with risks.
• Court Order
  • If an agreement can't be reached, a court may intervene and issue an order specifying how the proceeds are split. This could involve factors like outstanding debts, the value of other assets, and any existing agreements about the house
    • https://www.arnoldsmithlaw.com/how-do-i-stop-my-spouse-from-selling-our-assets-prior-to-a-divor.html
• Agreed Upon Temporary Solution
  • There's a possibility of a temporary solution where a portion of the money is accessible for immediate needs, like legal fees or finding a new place to live. This would still require both parties' consent.
    • https://divorce.com/blog/selling-house-before-divorce/

As always it's important to discuss this with a solicitor to get proper legal advice

• Ensures fair division
  • A professional can help ensure an equitable division of the proceeds considering factors like the initial investment of each party and any outstanding mortgage.
• Protects your rights
  • Having a formal agreement protects your rights and avoids any future disputes about the money.

It's generally advisable to finalise the financial settlement before or alongside selling the house. This helps avoid complications and delays in receiving your share of the proceeds.

[Noah W]

Thanks for the info, I've been struggling with this situation myself and not sure what to do because my STBEW is pushing hard to sell the FMH before we've reached any settlement agreement.  I've been told I don't have to agree with a sale of the FMH due to pending court case and delays on her side.  It's just not nice because I'm getting pressure from all sides (her, her solicitor & the estate agent).