Detailed Answer

Short answer: Yes — in many Delaware cases parties who hold all competing claims to sale proceeds can present the court with a signed agreement and ask the judge to enter a consent order that approves distribution without a full contested hearing. But the court has the final say. If the court must protect third-party interests, satisfy statutory requirements, or confirm a judicial sale, a hearing or additional court steps may still be required.

How consent orders work in Delaware

A consent order is a court order that reflects an agreement between the parties and that the judge signs. Delaware courts routinely accept and enter consent orders where the proposed terms fall within the court’s power and do not harm non‑consenting or unknown parties. See general court rules and procedures: Delaware Court Rules and the Delaware Code home page at delcode.delaware.gov for governing law and procedures.

Common situations where parties use consent orders to distribute sale proceeds

Partition sales where co‑owners agree on how to split the net proceeds and no third party objects.
Foreclosure or mortgage surplus funds when all lienholders and junior claimants sign releases and agree on priority and split.
Receivership or judicial sales where all claimants have known, resolved claims and stipulate to distribution.

When a hearing is still likely required

Even when parties wish to avoid a hearing, a Delaware court may require one if any of the following apply:

Not all claimants are before the court (unknown heirs, absent lienholders, minors, or creditors).
There are competing claims to funds or serious factual disputes about priorities or amounts owed.
A statute or rule requires judicial confirmation of a sale or specific process before distribution.
The court needs to determine reasonableness of fees (e.g., commission, counsel, receiver) or resolve accounting disputes.

For example, if a sheriff’s sale or court‑ordered partition produces surplus funds and multiple lienholders exist, the clerk or court may require a formal accounting and notice to lienholders before approving a distribution by consent.

Practical steps to use a consent order to distribute sale proceeds

Identify all possible claimants. List owners, lienholders, judgment creditors, and any persons with recorded interests.
Obtain written releases or stipulations from every claimant releasing their claim or agreeing to the split. If a claimant is a minor or incapacitated, court‑supervised protections may be necessary.
Prepare a consent order that recites the sale, net proceeds, payment of liens/taxes/fees, and the agreed split. Attach any settlement agreements and payoff statements as exhibits.
Provide required notices. If statute or local rule requires notice to unknown claimants or publication, follow that process before submitting the order.
Submit the consent order to the appropriate court (e.g., Superior Court or Court of Chancery) with a proposed form of order and proof of agreement/notice.
Be ready to supply an accounting and backup documents (sale contract, closing statement, lien payoffs). The court often asks for a proposed distribution schedule and proof that statutory priorities were satisfied.
If the judge signs the consent order, direct the clerk or escrow agent on how to disburse the funds and retain records of the distributions.

Key legal checkpoints in Delaware

Court discretion: Judges in Delaware courts retain discretion to enter or refuse consent orders. They will not sign an order that would violate law or prejudice absent parties.
Priority of liens: Parties must respect recorded mortgages and liens. The court will not permit distributions that impair superior lienholders’ rights.
Notice rules and due process: Procedural protections (service, notice, and the opportunity to be heard) remain important. Without proper notice, a consent order risks later being overturned.

Hypothetical example

Two co‑owners sell a jointly owned house in New Castle County. The sale produces $100,000 net. Both owners and the only recorded mortgage holder agree on the split and submit a settlement and a proposed consent order to Superior Court asking the court to approve distribution and dismiss the partition action. If the mortgage is paid from the proceeds and all claimants sign releases, the court will often enter the consent order without a contested hearing. But if an unknown creditor later appears claiming a lien, the court could be asked to revisit the distribution — which is why full disclosure and proper notice before entry matters.

When you should get a lawyer

Consult an attorney whenever you suspect competing claims, when large sums are involved, when minors or incapacitated persons may have interests, or when statutory sale procedures apply. An attorney can draft a consent order that protects clients, confirm required notices, and handle lien payoffs and clerk requirements.

Where to look for more rules and statutes

Delaware court rules and the Delaware Code provide procedural and substantive guidance. Start here:

Disclaimer: This article explains general principles under Delaware law and is for educational purposes only. It is not legal advice and does not create an attorney‑client relationship. For advice about your specific situation, consult a Delaware-licensed attorney.

Helpful Hints

Do a title/lien search before asking the court to accept a consent order. Unknown liens can derail a distribution.
Get written releases from everyone listed in the chain of title and from recorded lienholders before submitting a distribution order.
Attach supporting documents (sale closing statement, payoff letters, signed releases) to the proposed consent order to make court approval easier.
Confirm whether the particular sale requires court confirmation under local practice (partition vs. foreclosure/receiver sales can differ).
If minors or incapacitated persons are involved, expect the court to require extra steps such as guardian ad litem appointments or supervised settlements.
Keep copies of the signed order and proof of disbursement in case a late claimant challenges the distribution.
When in doubt, ask the court clerk what paperwork and notices the judge normally expects before submitting a consent order.