Solicitor holding proceeds

in0125

Sold house after divorced 10 years. Joint 50/50 owners on mortgage and “Consent order” saying 50/50 split

Along with other paperwork to be signed. The conveyance solicitors sent us a form saying how the money was to be split. We put both our separate bank details and put 50/50 and both signed it.

Just before completion ex wife tells solicitor to hold money as she is applying to court claiming more money.

Solicitors are not releasing funds until they get a fresh agreement of the split.

I have informed them the original signed split should be adhered to unless they receive a later one. They are breaking the agreement by not sending me  my share and I am claiming interest on a daily basis for late payment.

Surely the solicitor should inform ex wife they need to adhere to the original signed agreement unless both parties agree to change it.

It’s been 3 months now, how long do they intend holding my money.

Ombudsman rule is 8 weeks before they get involved. I am waiting for their reply.

SRA have strict rules about with holding sale proceeds as well .

 

Nothing seems to bother the solicitors. Don’t know how they can get involved like this. Their only jurisdiction is the sale of the house surely.

user1977

in0125 said:

Nothing seems to bother the solicitors. Don’t know how they can get involved like this. Their only jurisdiction is the sale of the house surely.

They have a responsibility to ensure clients' money goes to the correct clients. I can understand their caution where there is a dispute about how it's meant to be split. I'm sure they'd also much prefer to get rid of the money and close their file - they're not holding onto it just to wind you up.

Tiglet2

in0125 said:

Sold house after divorced 10 years. Joint 50/50 owners on mortgage and “Consent order” saying 50/50 split

Along with other paperwork to be signed. The conveyance solicitors sent us a form saying how the money was to be split. We put both our separate bank details and put 50/50 and both signed it.

Just before completion ex wife tells solicitor to hold money as she is applying to court claiming more money.

Solicitors are not releasing funds until they get a fresh agreement of the split.

I have informed them the original signed split should be adhered to unless they receive a later one. They are breaking the agreement by not sending me  my share and I am claiming interest on a daily basis for late payment.

Surely the solicitor should inform ex wife they need to adhere to the original signed agreement unless both parties agree to change it.

It’s been 3 months now, how long do they intend holding my money.

Ombudsman rule is 8 weeks before they get involved. I am waiting for their reply.

SRA have strict rules about with holding sale proceeds as well .

 

Nothing seems to bother the solicitors. Don’t know how they can get involved like this. Their only jurisdiction is the sale of the house surely.

The problem is that the solicitor has to act on behalf of both clients and there appears to be a dispute of the percentage split of funds.  While your ex may have agreed a 50/50 split initially, it appears that that is no longer the case.  Your conveyancing solicitor needs to have clear and amicable instructions from both clients about the division of sale proceeds.  Unless they have this, they cannot release the funds, unless to a Matrimonial Solicitor.

As your ex is going to court to try to increase their share, your solicitor will have to wait until the court proceedings have taken place and a new consent order is issued.  

I understand your frustration, but the solicitors cannot decide to rely solely on the original agreement because now your ex has advised that they are going to court to claim a larger share and are disputing the original agreement.  Conveyancing solicitors will not get involved in matrimonial issues unfortunately.  They just wait for the final outcome, when the court decision is made and you and your ex agree/sign your approval.

The funds will be held in the solicitor's Client Account.  Very little interest will be earned in a Client Account, so don't expect your claim for interest to be successful other than a token goodwill payment.  Similarly, don't expect the Legal Ombudsman to order them to release the funds to you, as the solicitors are unable to release the funds to you without clear agreement from you AND ex.  As I said above, they will release the funds to a Matrimonial Solicitor, but you'd have to decide whether it's your matrimonial solicitor or your ex's that the funds are released to and they still won't be released to both of you, until the pair of you have reached agreement on the split.

Your solicitors are not "involved".  They are merely following legal process in not distributing funds until agreement has been reached.  Once that is agreed, the funds will be released.  Other than that, they won't be interested in the ins and outs of you and your ex's disagreement.  Conveyancing solicitors do not generally hold onto sales proceeds - you are right that they are only instructed in the sale or purchase of property.  As they are holding onto the funds, I am wondering whether you don't have a matrimonial solicitor instructed.

It might be quicker if you had an conversation with your ex and agree amicably to a split of say 60/40 to get the agreement signed and agreed as soon as possible, without going through the court process.

jonnydeppiwish!

Is the consent order not legally binding regardless of any further action unless directed by the court?

And why in earth should the op agree to - 60/40 split when they’ve previously agreed to a 50/50?

Tiglet2

jonnydeppiwish! said:

Is the consent order not legally binding regardless of any further action unless directed by the court?

And why in earth should the op agree to - 60/40 split when they’ve previously agreed to a 50/50?

The ex has indicated a return to court to fight for a larger share of the proceeds.  That might or might not be successful (for example, are there children involved?).  The court may decide the earlier 50/50 split stands, on the other hand the ex may gain a greater percentage.  I merely suggested that the OP could liaise with the ex privately to agree a split (ex now doesn't agree the 50/50 split), rather than wait for due process by the court.

in0125

Tiglet2 said:

jonnydeppiwish! said:

Is the consent order not legally binding regardless of any further action unless directed by the court?

And why in earth should the op agree to - 60/40 split when they’ve previously agreed to a 50/50?

The ex has indicated a return to court to fight for a larger share of the proceeds.  That might or might not be successful (for example, are there children involved?).  The court may decide the earlier 50/50 split stands, on the other hand the ex may gain a greater percentage.  I merely suggested that the OP could liaise with the ex privately to agree a split (ex now doesn't agree the 50/50 split), rather than wait for due process by the court.

Children grown up. A consent order cannot be changed. Its just a last chance to put the screws in now the final ties are complete.

doodling

Hi,

What stage has the ex reached in court proceedings regarding the revised split?

If there currently are no court proceedings in progress then it is unreasonable for the conveyancing solicitors to withhold the money.  They have a court order (the consent order) stating how the proceeds should be split and it is wholly unreasonable for them to second guess a court.

If there are currently active court proceedings then I can understand their reluctance to hand over the money and you almost certainly won't see it until that case has run its course.

It sounds like this has been going on for some time (plenty of time for the ex to start proceedings?) - I would be asking the conveyancing solicitors how long they propose to wait for the ex to start proceedings (and what happens if they they never do)?

If you and the ex can jointly agree limits to their claim the you might (only might) be able to get some of the money released e.g. if the ex is claiming a 60/40 split then there is nothing stopping a release of up to 40% to each of you.  Think carefully about it before you go down that path - would that give the the ex the money to fund their challenge to the consent order?