Legal Question in Family Law in California
Challenging court order home sale proceeds be held in trust
Family law courts typically will order the sale of the community property family residence but have the parties ''stipulate'' or agree that the net proceeds be divided and subsequently held by the respective attorneys ''in trust'' and that none of the trust funds may be released or disbursed absent the parties' agreement or further order of the court.
But if one of the parties dismisses their attorney, what is the authority of the court to insist that the new counsel take over and hold the client's half of the funds in trust especially where the client demands that the dismissed counsel and/or new counsel return the funds held in trust? The reason this is important is that it appears that this ''procedure'' is used to ensure that a good portion of a client's equity (the trust funds) remains readily available to the court while the case is pending to pay an assortment of what are often unnecessary experts (e.g. minor's counsel, counsel, evaluators, therapists, special masters). What is the court's authority to order counsel to hold a client's portion of the home equity in trust? What if the client demands that the new attorney return their funds in violation of the court's order? Can the lawyer do this without risk? Please reply.
1 Answer from Attorneys
Re: Challenging court order home sale proceeds be held in trust
The court's order that the funds be held is valid until it is set aside by that court or an appellate court.
If you dismiss your attorney and represent yourself you become your own attorney. You would be bound by the court order to hold the money pending a court order or a written agreement of the parties. Thus releasing your attorney will not allow you to take the money being held in trust and use it as you see fit.
You should discuss this with an attorney. There may be ways to avoid the costs you are concerned about incurring.
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