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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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Old 09-14-2018, 11:51 AM
iona6656 iona6656 is offline
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Default Holding the Proceeds from the Sale of the Matrimonial Home in Trust

Have any of you held the proceeds of the sale of the matrimonial home in trust on instruction from your lawyer?

Is it the standard practice that they will do this where equalization is being litigated? Have you or your ex fought this?
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Old 09-14-2018, 12:48 PM
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arabian arabian is offline
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yes

Lawyers want to make sure they are paid. Keep this in mind, particularly if you have large amount of equity in your home....lawyers will certainly help you spend it. Lawyers love it when people disagree.
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Old 09-14-2018, 01:51 PM
iona6656 iona6656 is offline
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Originally Posted by arabian View Post
yes

Lawyers want to make sure they are paid. Keep this in mind, particularly if you have large amount of equity in your home....lawyers will certainly help you spend it. Lawyers love it when people disagree.
based on your own experience- would there be anything you would recommend so that we both don't eat up all the equity?
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Old 09-14-2018, 02:39 PM
Stillbreathing Stillbreathing is offline
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Sold our home 4 years ago. The proceeds are still in trust. Funny thing about this “trust” account is that you shouldn’t for one minute “trust” the judges when you have such an account. They stick their grubby fingers in it to pay everyone but you. They will release money for legal fees and custody assessors but not for you to feed your children with. It will also act like a ball and chain around your neck should you be in dire financial need. You and your children will not qualify for welfare as there is too much money in this trust fund that you can not access. Would have been much better if the matrimonial home had burnt to the ground, blown up, melted, disintegrated or simply been beamed up to Mars. Selling the matrimonial home did not in any way, shape or form move our case along. What it did do was make the children and I homeless and force us to live out of my vehicle for a time. All this with high six figures sitting in a “trust” account!
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Old 09-14-2018, 03:52 PM
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Originally Posted by Stillbreathing View Post
Sold our home 4 years ago. The proceeds are still in trust. Funny thing about this “trust” account is that you shouldn’t for one minute “trust” the judges when you have such an account. They stick their grubby fingers in it to pay everyone but you. They will release money for legal fees and custody assessors but not for you to feed your children with. It will also act like a ball and chain around your neck should you be in dire financial need. You and your children will not qualify for welfare as there is too much money in this trust fund that you can not access. Would have been much better if the matrimonial home had burnt to the ground, blown up, melted, disintegrated or simply been beamed up to Mars. Selling the matrimonial home did not in any way, shape or form move our case along. What it did do was make the children and I homeless and force us to live out of my vehicle for a time. All this with high six figures sitting in a “trust” account!
Is it that you don't agree on equalization?

The position I am in is that I can carry on fine without the proceeds of the sale. I have a large amount of unsecured debt, but I can make the payments relatively easy- and I am more than lucky to be able to live with my parents at this time- and cover all my daughter's schooling and necessities costs on my salary alone. It's actually my ex who is going to be in the worse position (I think) because as soon as the house is sold - I will be filing a motion for child support (he's paying my share of the mortgage right now to offset what he owes in child support).

My lawyer's strategy is that we sell hte house and tie up the proceeds. The only thing I worry about is that once my ex doesn't have to pay the mortgage- what incentive is he going to have to settle equalization? I mean- he doesn't have primary care of our daughter. He's not paying her montessori fees, or child support. I will likely have to file a motion to get either of those in any case.

Bah.
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Old 09-14-2018, 03:55 PM
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Have you just started the process? Why has he not been ordered to pay support? That is normally the first thing ordered in the process...
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Old 09-14-2018, 04:36 PM
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Have you just started the process? Why has he not been ordered to pay support? That is normally the first thing ordered in the process...
We are in litigation. We have had one settlement conference- where we submitted access order. My previous lawyer (whom I fired) didn't fight for child support then, which is what she should have done.

Because he is "paying" my half of the carrying costs of the house. Which is slightly more than the table amount of child support. However, what this doesn't account for is that he's simply been paying it from the money I transferred to him prior to separation for this purpose (it's a long story- but he lied about an account being joint- I believed him that it was and he had added me to the account. I would simply just transfer him an amount for mortgage + savings each pay period. He lied. It was never joint- he simply drained this account to pay his criminal and family legal fees and the mortgage on the house).

I could argue this- but I'll rack more up in legal fees, and I'd rather just go for a fair equalization amount. Child support will go into our post-separation adjustment chart. When he makes claims about the houses "carrying costs" (e.g. the mortgage) I will provide proof of the e-transfers and "joint account".

Also- he hasn't even filed his 2017 taxes. We've asked. They stall- so child support cannot be calculated. If they don't come to the table- we'll deal with everything on one motion.
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Old 09-17-2018, 10:23 AM
OrleansLawyer OrleansLawyer is online now
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Quote:
Have any of you held the proceeds of the sale of the matrimonial home in trust on instruction from your lawyer?

Is it the standard practice that they will do this where equalization is being litigated? Have you or your ex fought this?
When equalization is an issue, the home is generally the only guaranteed source of payment for the equalization recipient. Other assets can be spent or moved out of the country. An award for equalization is like any other personal debt - it only helps you if you can collect.

Generally, as the issues narrow there should be a partial release of the money. For example, if $300k is held in trust, and the dispute is whether equalization is $20k owing from Party A or $50k owing from Party B, then Party A should be able to receive $130k and Party B should be able to receive $100k, with the balance of $70k held in trust to preserve claims. Possibly adding some extra from both sides in case of adjustment, interest, or cost award.
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