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Topic:
House sale and divorce in progress: settling of marital debt (5 Posts)
Started By:
Date:
11 April, 2017 11:24AM
House sale and divorce in progress: settling of marital debt
adviceseekers - 11 April, 2017 11:24AM
Hi all,

My soon to be ex wife and I have recently attended mediation and agreed a financial settlement.
My solicitor is currently turning the outcome of that into a consent order to lodge with the court - however our house sale is running faster than the court process and is due to complete next week.

My wife has, fairly, asked that we make arrangements so that fund can be released to her. My solicitor has advised that a letter, reflecting the mediation outcome and consent order, signed by both of us should be sufficient that we can release funds.

Loosely speaking the agreed settlement is:

* House Sold;
* Proceeds settle mortgage, estate agent and conveyancing costs;
* Remainder settles unsecured marrital debts;
* Balance split slightly in my exs favour (56%);

This is all fine and well.
The issue is a logistics one - the conveyancing solicitor is advising they only settle debts related to the sale and will not handle the actual paying off of debts.

My ex, probably fairly, doesn't trust me to do it if the 'debt money' was all paid to me. Likewise I don't have much faith in her doing so.
Is there an obvious solution mechanism for this kind of situation?

Thanks in advance smiling smiley

Steve
Re: House sale and divorce in progress: settling of marital debt
Andyk - 11 April, 2017 01:04PM
Have the money paid into a joint bank account where you both have to sign then you both know it has been paid.
Re: House sale and divorce in progress: settling of marital debt
adviceseekers - 12 April, 2017 11:18AM
Not a bad plan - but we don't have a joint account. Any other ideas?
Re: House sale and divorce in progress: settling of marital debt
Andyk - 12 April, 2017 11:24AM
Open up a joint account specifically for this purpose, then you are both satisfied that the debts have been paid and neither of you are running off with the money.
Re: House sale and divorce in progress: settling of marital debt
Bubblegum - 12 April, 2017 11:29AM
Maybe ask the solicitor to hold enough funds on account to cover the marital debts and release them once the consent order is enforceable.
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