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  • FIRST POST
    • Dilbert999
    • By Dilbert999 29th Sep 19, 6:11 PM
    • 60Posts
    • 64Thanks
    Dilbert999
    Who pays for costs relating to sale of family house, post decree absolute?
    • #1
    • 29th Sep 19, 6:11 PM
    Who pays for costs relating to sale of family house, post decree absolute? 29th Sep 19 at 6:11 PM
    (MovingForwards thanks for your initial reply. However, I had got the details wrong and the situation is as follows)

    My cousin has now got his decree absolute & the family house is being sold. No children involved.
    He is getting a small lump sum and his ex-wife is getting all what is left after house sale costs - all approved by court. A buyer for the house has been found, & just getting the process underway.

    The Court Order says "The proceeds of sale shall be applied (a) in payment of the solicitors' conveyancing and disbursements in connection with the sale; (b) in payment of the estate agent's charges (c) in payment of the Cousin's lump sum and (d) in payment of the balance to the ex-wife.

    His wife is engaging a solicitor for the conveyancing. This solicitor has asked an initial payment of £xxx on account, and his ex-wife is asking my cousin to pay 50% of this amount. Is this correct? Or should she pay all of it, given this solicitor will eventually use the sale proceeds to pay their own costs & disbursements?
    Thanks for any advice on this. Apologies for posting incorrectly initially.
    Last edited by Dilbert999; 01-10-2019 at 3:23 PM. Reason: Correction
Page 1
    • MovingForwards
    • By MovingForwards 29th Sep 19, 7:25 PM
    • 2,520 Posts
    • 2,983 Thanks
    MovingForwards
    • #2
    • 29th Sep 19, 7:25 PM
    • #2
    • 29th Sep 19, 7:25 PM
    "His ex-wife is getting 80%, he is getting 20% (after all house sale costs) - all approved by court."

    If the court order states he gets 20% and she gets 80% after costs then they are both to pay 50% of the costs, what would happen is the property sells, solicitors take their fees, pays the estate agent fees, any indemnity policies or other costs, the remainder is split 80/20.

    Make sure he checks the court order and it confirms what you have said, if it does tell her so.
    • Glatter
    • By Glatter 13th Oct 19, 10:28 AM
    • 5 Posts
    • 2 Thanks
    Glatter
    • #3
    • 13th Oct 19, 10:28 AM
    • #3
    • 13th Oct 19, 10:28 AM
    (MovingForwards thanks for your initial reply. However, I had got the details wrong and the situation is as follows)

    My cousin has now got his decree absolute & the family house is being sold. No children involved.
    He is getting a small lump sum and his ex-wife is getting all what is left after house sale costs - all approved by court. A buyer for the house has been found, & just getting the process underway.

    The Court Order says "The proceeds of sale shall be applied (a) in payment of the solicitors' conveyancing and disbursements in connection with the sale; (b) in payment of the estate agent's charges (c) in payment of the Cousin's lump sum and (d) in payment of the balance to the ex-wife.

    His wife is engaging a solicitor for the conveyancing. This solicitor has asked an initial payment of £xxx on account, and his ex-wife is asking my cousin to pay 50% of this amount. Is this correct? Or should she pay all of it, given this solicitor will eventually use the sale proceeds to pay their own costs & disbursements?
    Thanks for any advice on this. Apologies for posting incorrectly initially.
    Originally posted by Dilbert999
    It actually makes very little difference to the advice already provided by MovingForwards above.

    To simplify matters, as the ex wife is engaging the services of the solicitor, it may be simpler if she pays the sum on account, but I understand perhaps she may not be in a position to fund that at this time, hence why she is expecting that to be shared.

    But the final outcome will be the same.

    Perhaps the easiest way to explain is by way of example?
    Let us assume the following, entirely fictitious figures apply:

    £100,000 - house sale price
    £2500 - solicitors costs, disbursements, etc
    £1500 - estate agents fees

    £19,200 - amount due to cousin
    (now that may seem a strange figure to assume, but all will become clear in a moment, as I am unclear if the court has set a fixed figure as in now suggested, or a percentage of the proceeds as it seems was originally indicated)


    1, If there was no payment on account requested, the calculation would be simple:

    Receipts:
    £100,000 - from house sale
    Total = £100,000

    Allocations:
    £2500 - solicitors costs, disbursements, etc
    £1500 - estate agents fees

    (that would leave £96,000, which would then be distributed as follows, whether as 20% or a fixed sum to the cousin)

    £19,200 - amount due to cousin
    £76,800 - amount due to ex-wife
    Total = £100,000


    2. If the solicitor requests payment on account of say £100, and that is paid by the ex-wife.

    Receipts:
    £100 - payment on account received from ex-wife
    £100,000 - from house sale
    Total = £100,100


    Allocations:
    £2500 - solicitors costs, disbursements, etc
    £1500 - estate agents fees
    £19,200 - amount due to cousin
    £76,900 - amount due to ex-wife (this includes the £100 payment made on account)
    Total = £100,100


    3. If the solicitor requests payment on account of say £100, and that is paid equally by the cosuin & ex-wife.

    Receipts:
    £50 - payment on account received from ex-wife
    £50 - payment on account received from cousin
    £100,000 - from house sale
    Total = £100,100


    Allocations:
    £2500 - solicitors costs, disbursements, etc
    £1500 - estate agents fees
    £19,250 - amount due to cousin (this includes the £50 payment made on account)
    £76,850 - amount due to ex-wife (this includes the £50 payment made on account)
    Total = £100,100

    So in all 3 examples, the net benefit would be as follows:

    £19,200 - amount due to cousin
    £76,800 - amount due to ex-wife

    All that is important is that the solicitor is aware of where their payment on account originates from, otherwise if your cousin pays his ex wife £50 so that the ex-wife then pays the solicitor the £100 on account requested, there could be battle by your cousin to recover that £50 from his ex-wife once the solicitor settles their account.
    Last edited by Glatter; 13-10-2019 at 10:31 AM.
    • Dilbert999
    • By Dilbert999 15th Oct 19, 9:31 PM
    • 60 Posts
    • 64 Thanks
    Dilbert999
    • #4
    • 15th Oct 19, 9:31 PM
    Thanks
    • #4
    • 15th Oct 19, 9:31 PM
    Thanks for your very helpful reply. Your last point was key, as his ex-wife had no intention of paying my cousin back.
    Last edited by Dilbert999; 15-10-2019 at 9:39 PM.
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