The pair became locked in a bitter battle over the sprawling Florida property in 2020 when Collins filed an eviction lawsuit against her after learning that she had secretly married her next husband Thomas Bates that year.
While Collins and Cevey were said to have made a deal to split the house down the middle, the singer apparently decided against the agreement and requested her case be dismissed.
However, the judge has now ruled that Cevey's case can move forward, according to the New York Post's gossip column Page Six.
"The original deal was that she gets half the value of the house. That was the agreement they made. She's suing for half, and he tried to get (the case) dismissed," a source told the outlet.
"Now the judge ruled that her case can move forward."
However, a representative for Collins insisted the ruling didn't mean much in their case, stating, "The (new) motion argued that Orianne's case was filed in the wrong court, and (she) had to refile in the correct court, so the only significance in this ruling is the court that she's going to lose in."
Meanwhile, Phil Collins and his bandmates have been forced to put their farewell tour on hold because of Covid-19 outbreak "within the band." It's not specified who has contracted the virus.