17 April 2015
Dear Mentor, just got a question on family law issue. We acted for one client in her divorce and property division matter. Regarding the property issue, we have the settlement proceeds in our trust account after sale of the property in both the wife and husband's name. Now, we cease to act for the client and have transferred the whole file to her new solicitor.
Just wondering if we have any basis to keep holding the settlement proceeds in our trust account as the new solicitor is asking for the proceeds e.g. pending the resolve of the property division issue or order of the court? The client has not yet paid our legal fees in full. Thanks for responding.
If the settlement is not finalised then presumably you are holding the proceeds of sale on the authority of both parties and therefore need the authority of both to change the arrangement.
We suggest that you have the new solicitor provide an irrevocable authority to pay your outstanding costs out of the former client's share of the proceeds once determined.
Regards Mentor
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