ex has 2 rental properties does this count towards assessment ?

londonbabe73

I have put a new claim in with the csa in may for the first time after having a breakdown with my ex after 2 years of a private agreement.

ex prev had a high paying job earning £50k pa but gave it up
he decided to move into IT and then spent much of 2009 "studying". Ive spent the last 6 months getting nothing so was forced to go to the csa as a last resort.

he is now in an entry level job doing IT i dont know hat he is earning but i'm guess it's half of what he was on prev but he lives with his girlfriend in her house and she has a low mortgage.He already rented out his flat in kent but as far as i was aware he was just about covering the mortagage payments

despite this fact in 2009 when he was earning nothing he managed to buy a 2nd flat ( his name only ) so now he is earning i guess under 30k a year but has income from 2 flats is this counted in the assessment as prev i was told no when he was studying and that i would get NIL and i was like i have half a flat ( shared ownership) yet he had 2 rental flats and he had to pay nada when i got to support our son on nothing how is this fair ???? :mad:

speedster

nothings fair with the csa.

if the rent from both properties only covers the mortgage payments, then there will be no assesible income from them.

londonbabe73

but what about the equity ?? one flat he only owed about £60k on a £150K flat which i'm asuming he used to get the 2nd flat , so i'm supporting our son whilst he builds up his property empire what happens when he sells ? what a joke

Jet

They can take property into account and once there is a certain amount of equity they have a formula to calculate the income from it.

londonbabe73

i haven't been given a award figure yet so do i ask if the properties have been taken into a/c ie would the csa give me a breakdown of how they came to the amount awarded ?

he has been complying with the csa for the moment as we are going to court next month for contact after he decided to remember his son exsisted after 12 months. as i'm guessing he doesnt want me to bring it up with the judge that he hasn't been paying !!!

speedster

just curious, but how come it's got to the court stage?

normally a last resort for the desperate amongst us!

londonbabe73

to keep a long story short

broke up with ex in 2007 everything fine 12 months later new girlfriend on the scene and ex is trying to palm me off with half the child support we agreed . luckily i still had access to joint account so i withdrew cash ( no more than what i was owed ) he was !!!!ed off big time so he stopped talking to me ( not a problem for me what so ever ) then he stopped seeing his son in aug 2009 no contact with his son ( forgot to saw if things dont go his way then he sulks ) i offered to do mediation to try and sort it out but he refused but despite this he insisted on taking me to court for access which i'm quite looking forward to as at least i can say my piece and he will HAVE to listen :j

PlayingHardball

Jet wrote: »

They can take property into account and once there is a certain amount of equity they have a formula to calculate the income from it.

I think the OP has a strong case. My understanding is that the CSA CAN take assets into account, as long as the assets are a minimum of £65,000 and those assets (the flats) are not his main residence.

Good luck, I think you've got a very good chance of getting a good result with the CSA. Did you put in a variation application, or a normal CSA application?

And I agree with you 100% - you shouldn't have had to shoulder the entire financial burden for your child on your own, thats wrong.

PlayingHardball

speedster wrote: »

nothings fair with the csa.

if the rent from both properties only covers the mortgage payments, then there will be no assesible income from them.

This is not correct.

CSA are not interested in the profit from these properties they are only interested in how much equity there is.

Otherwise, along with all of the available tactics that some NRP use to avoid paying child support, (such as going self employed) we would end up with NRPs all accross the UK 'buying up properties'.

chall1964

PlayingHardball wrote: »

This is not correct.

CSA are not interested in the profit from these properties they are only interested in how much equity there is.

Otherwise, along with all of the available tactics that some NRP use to avoid paying child support, (such as going self employed) we would end up with NRPs all accross the UK 'buying up properties'.

Payments for the use of a property that is not the NRP's main residence are taken into account as other income, unless the NRP is s/e. In which case the income is treated as part of the gross receipts of the business. If the NRP is not s/e, the amounts to cover income tax, mortgage interest, interest on loans for repair/improvements, council tax and water charges can all be deducted from the amount received as rent.

The agency can investigate and adjust if an asset is being underused ie; an investment producing less income than is reasonable.

speedster

PlayingHardball wrote: »

This is not correct.

CSA are not interested in the profit from these properties they are only interested in how much equity there is.

Otherwise, along with all of the available tactics that some NRP use to avoid paying child support, (such as going self employed) we would end up with NRPs all accross the UK 'buying up properties'.

i think you'll find that a property with equity over 65k (i think) can be assessed as income.

thing is, you could own half a dozen properties with 90% mortgages where the rent just covers the debt. therefore, there will be no income for tax or csa purposes.