If we sell house prior to arbitration

We will be heading to arbitration or litigation. I (wife) am in the house with the kids. If we both agree, can we sell the house now but put all the equity into a trust account that neither of us can touch until an arbitrator or judge decides what the split percentage of the house equity will be?

Yes, if you can reach a partial agreement on how to handle the marital residence, you can go ahead and sell it and wait until a final determination is made on equitable distribution before dividing the earnings from the sale.