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Ex didn't cash cheque from house sale - who gets the money??!

10 replies

noBSplease · 25/02/2013 11:20

In 2011 my ex forced the sale of the flat we co-owned, saying he needed the money from the sale. The profit split was agreed and documented by the conveyancing solicitor, and we were each sent a cheque for about £16k. A little while ago the conveyancing solicitor contacted me asking if I knew where he was, as they had a cheque for him. This cheque can only be his profit payout, so it seems he hasn't cashed the cheque. I don't know if he's avoiding capital gains tax, or paying more child maintenance or what...

So if he never cashes the cheque, who would get the money? Can I apply to claim it? (He didn't pay anything into the flat and refused to let me buy him out of it... If I'd gone to court I could've easily argued that he shouldn't get any profit but I just wanted to get him out of my hair and to get on with life so I agreed he could have half... maybe very foolishly...). Could he ask that the cheque is made payable to someone else? (hence avoid tax...) Any advice very gratefully received!

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RedHelenB · 25/02/2013 17:57

Wouldn't the solicitors just reissue the cheque to him once they have his address?

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noBSplease · 25/02/2013 18:07

They do have his address - they sent him the cheque but months and months passed and he didn't cash it!! And I believe they phoned him to check he received it, solicitor called me to check she had the correct phone number for him (she did) as she said she hadn't been able to get in touch with him, he wasn't getting back to her...

So I know it seems weird that anyone would be given a cheque for £16k and not cash it but that does seem to be what's happened... Am not greedy but what a blooming waste of cash!!

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ChocHobNob · 26/02/2013 12:31

£16,000 would not make any difference to child maintenance.

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BobbiFleckmann · 26/02/2013 12:34

you're making a huge assumption that it is the sale proceeds that the conveyancer is sending on.
It's quite normal for there to be a small retention from sale to cover things like unknown service charge costs for a flat etc etc which would then be released once actual invoices come in - hence the delay. it's far more likely to be a cheque for £16 than £16,000.

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noBSplease · 26/02/2013 13:06

Hmmmm maybe I'm wrong but as ex pays maintenance through CSA I thought this money should be added to his income and so the amount he needs to pay would increase accordingly... CSA calculate according to income and as he's self employed and didn't live in the property he would need to declare profit as income and pay capital gains tax.

Maintenance isn't my concern (he pays so little and so infrequently anyway), but he has done everything he can to avoid paying it at all so it's obviously a concern of his...

Yes it is a huge assumption that this is sale cheque but we both had the same conveyancing solicitor and I dealt with her and the sale - he wasn't involved in the process at all, bar signing bits of paper and waiting for the payout. So if there was money to be returned or whatever I'd have thought I'd know about it, it would have been me she'd come to to sort it out.

Guess I'll have to ask conveyancing solicitor directly but just wondered if anyone could offer any insight before I do so... Thanks for input.

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Collaborate · 26/02/2013 13:23

A capital receipt won't be classed as income. If there are CSA arears you could ask the CSA to go against it to recover those arrears.

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ChocHobNob · 26/02/2013 13:37

As Collaborate says, it wouldn't be classed as income by the CSA. Only interest on savings and assets over £66,000 can be used for maintenance purposes (unless there are arrears, again as Collaborate said).

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noBSplease · 26/02/2013 15:27

Aah ok, think I get it... So if he's self-emp and has to fill it in on tax return and has to pay capital gains tax on it then it's classed as a capital gain and seperate from his income?

There are CSA arrears but every time they pursue he pays a bit or makes an arrangement so they have to back off so they've never got as far as investigating what he's got in the bank... But as said, that's not something I'm worried about.

I just think that if he hasn't taken the money and he's not going to take it it could be put to good use or put into trust for our son or something. Wouldn't like for the solicitor to just keep it cos as nice as they were it'd be a rather large fee!!

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prh47bridge · 26/02/2013 17:53

It won't become the solicitor's money. Unclaimed client funds are usually donated to charity.

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noBSplease · 27/02/2013 20:52

Oh well at least it may well end up going to someone who needs it... Thanks for info.