If it turns out she is due half the house then you can either sell and take half, which when you deduct fees and have the grief could land you with £120k max but probably less
or
Take her £120k, I'm sure it will be tough to see her live there but at the end of the day you need to come out in the best financial situation possible. You could even barter the best furniture out of it as she will prob do anything to keep the place thinking she is getting one over.
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