Capital and the CSA

Jet

My boyfriend and I are considering moving in together. I just want to make sure I have thought about things properly before hand.

The plan would be that I move in with him in his home which is a tied cottage which goes with his job. He does own a property which he rents out and has never lived in. It is about 80% mortgaged and currently the mortgage is equal to the rental income. I own my house and the intention would be to rent it out (mainly as security in case I wanted to move back).

Boyfriend has 4 children who he pays maintenance for above CSA rates and who stay with him 1/3rd of the time. I understand that ex wife wanted a share of the "profits" from the house he owns and rents out and under the CSA rules, capital above a certain amount can be used for calculating additional maintenance. As there are no "profits" as yet from the property, she has no claim although I understand this will change as and when there is sufficient equity in the property.

My main question is that if we live together, is there any way the CSA will see my property income as "ours" and therefore entitle the ex wife to some of it? What about if we were to marry? Surely the properties would become joint assets wouldn't they?

13Kent

The big difference is whether you are on CSA 1 or 2.

As a NRPP I'm pretty sure that you are not obliged to give the CSA any details about your financial circumstances. (I'm sure someone else will confirm this)

Under CSA 1 they do ask for partners income details as it can make a difference to the assessed amount, however our payments went up a lot after my income was taken into account and in hindsight I wished I hadn't disclosed it! - We only did so as the CSA threatened to double the amount my OH paid as an interim measure until they had received my details so we were frightened into giving my details.

Under CSA 2 I believe the assessment is a straight percentage of the NRP's pay, and also is calculated due to how many nights per year the children stay with the NRP. The partner's finances are not taken into account.

As far as I know a property can only be joint if both partners have their names on the deeds. If the property is in your name you will receive a rental income and therefore be liable for tax on that, but not your partner or husband unless his name is on the deeds.

Jet

Hi,

My partner is on CSA 2, so unless they change the rules and the property remains in my name, then all should stay the same.

speedster

rental income is safe from the csa as lomg as it only covers the mortgage interest payment. it cant be classed as income if there is no profit.

as stated CSA2, your details are irrelevant and if they ask him for your details, you can happily and legally tell them to foooooooook off! :rotfl: