Payment to ex means virtually no money to live on

lovetowinacar

Is this correct?

My brother has been kicked out by his wife (again) since she has new boyfriend (the third in 5 years). Boyfriend has not moved in.

She is now claiming WTC and CTC as single mum, 2 children, she earns minimum wage 30 hours per week.

She has managed to convince my brother that even though her tax credit income has gone up he must still pay half of all the household bills, joint morgage, life cover, food, car costs etc, council tax (I've told him she will get the 25% discount), electricity etc etc.

However I understand that although she receives income from him to cover half of all household bills she doesn't need to declare this to tax credits at all. She is effectively better off by kicking him out and being a single mum since receives extra tax credit income and a very large percentage of his net income to cover half the bills. Is this correct, I thought only child maintenance was ignored by tax credits not other payments from ex and how can they tell the difference? PS she wants his money in cash, which seems strange if is not counted anyway.

He is really struggling (yet again) and lives in a mates spare bedroom (free at mo) and visits our parents for his meals, left with very little and has children every weekend which is costly for food etc on top of what he is already paying, our parents help with feeding the kids. I have suggested he contact the CSA since looking at their guidelines he would pay considerably less and be able to at least rent a room for himself instead of begging off a friend and relatives.

Is this correct? Any suggestions? Many thanks.

runninglea

CSA might be best way forward, they will calculate a certain % of his wage to give to his ex. Probably about 20% then they take off the number of days your brother has the children. This will reduce the amount payable each week

Jowo_2

There is a child support forum so I suggest you check there. As far as I know, under new CSA rules, your brother is required to pay a percentage of his wage to the mother of his children, depending on the number of children plus some other factors. Her expenses are irrelevant, AFAIK.

Child support is ignored for all means tested benefits - they do not impact the receipt of benefits for the recipient.

He should seek expert advice, perhaps visit a solictor, to understand his obligations with regard to the mortgage, whether for example, she would be given the right to reside in the property until the youngest turns 18 but must contribute towards the mortgage. I don't know the position on this but he should find a solicitor familiar with family law. Sounds like time to formalise a divorce and settlement where her income is taken into account and that leaves him with sufficient income for his everyday expenses!

You should also encourage him to work his way through the Turn2us website to understand her household income to open his eyes to the type of income she is enjoying with half of her household bills halved courtesy of his generosity. She is potentially receiving £355 per week in her hand, £1540 per month, equivalent to a taxable income of

£156 per week after tax from her job
£166 per week tax credits (child tax credits of approx £98 and then £66 working tax credits)
£33 per week child benefits.
plus a 25% rebate on council tax.

I would think that the main disadvantage with paying cash is that he simply can't prove his contribution to the CSA.

lovetowinacar

runninglea wrote: »

CSA might be best way forward, they will calculate a certain % of his wage to give to his ex. Probably about 20% then they take off the number of days your brother has the children. This will reduce the amount payable each week

I have had a look at this and the amount the CSA state he should be paying is only £29 per week for the two children!!! If he paid this he would be able to rent a bedsit not just the spare bedroom of a mate and he could pay for his own food. I think he needs to see a solicitor or CAB since to get the correct advice not just do as she states..

runninglea

he can ring up the csa if she wont listen. Not always best to have them involved but sounds like it would be in your brothers case.

Any payments he makes to her in the mean while should be done by cheque, otherwise they could back date and any cash payments ignored

ihatecaptcha

lovetowinacar wrote: »

I have had a look at this and the amount the CSA state he should be paying is only £29 per week for the two children!!! If he paid this he would be able to rent a bedsit not just the spare bedroom of a mate and he could pay for his own food. I think he needs to see a solicitor or CAB since to get the correct advice not just do as she states..

Yes, it would make sense for him to see a solicitor and get a court order drawn up for future maintenance. Going through the CSA is no way to settle things if his name is on the mortgage. All the outgoings and assets need to be taken into consideration, including pensions. And maybe you should keep out of it, and let the parents and their solicitors work out an agreement about the best way to support their children. Your brother may feel his children are worth more than £15.50 each per week.

AnxiousMum

Hey lovetowinacar - don't know what ihatecaptcha is talking about re dealing with CSA on things like mortgage etc., that's not something they get involved with anyway. They deal solely with child support.
I would contact CSA and get a set up going with them - where you are the instigator, wanting to do the right thing by your kids, but just not get gouged by the ex in the meantime. See a family lawyer about the house, mortgage assets etc. But make sure you get yourself covered with the CSA and make sure you have a receipt that makes it clear that any money you are paying her is for CHILD SUPPORT. If she is specifically requesting cash - the she's up to no good likely - and has a plan of action. I don't think that any pwc who is being up front and honest, and not scheming - has any valid reason to request cash payments - and as she works, has a mortgage etc., I'm assuming she has a bank account.

By looking after yourself, you will also be looking after your kids. You need to ensure that you have petrol money to visit with them, that you have somewhere that they can be comfortable visiting with you/staying over, and food to feed them. You also have the right to be able to spend some of your extra cash having fun with them when they are with you.

If 20% of your income works out to be £29.90 per week - then pay that amount - and get the other stuff sorted out through a lawyer. If you want to help out with some of the household expenses, make sure you cover yourself and mark the payments as 'child support' - otherwise they could assume there was an 'understanding' that you would pay certain things upon moving out.

Do the right thing by your kids - but also do the right thing for yourself.

ihatecaptcha

AnxiousMum wrote: »

Hey lovetowinacar - don't know what ihatecaptcha is talking about re dealing with CSA on things like mortgage etc., that's not something they get involved with anyway. They deal solely with child support.

That's what I said -- going through the CSA is no way to settle things if his name is on the mortgage. If they both see solicitors and work out a court order, then it draws a line under everything and both of them know where they stand. Without a court order, believe me, there will be haggling and conflict for years to come. Better for the parents to come to an agreement, than for the state to decide for them.

If she is specifically requesting cash - the she's up to no good likely - and has a plan of action.

Without drawing any conclusions about her motives for asking for cash, I agree it would be best to have a paper trail for all payments.

Do the right thing by your kids - but also do the right thing for yourself.

Yep, I agree. The less strife, the less hard it will be for the kids. It won't be easy for them whatever.

flutterby_lil

Maybe he should just tell her he won't be a doormat and pay the bills, life cover etc and stand up to her? More fool him, i certainly know where i would tell my ex to go if i was in his shoes - good luck!

flashnazia

lovetowinacar wrote: »

.... she receives income from him to cover half of all household bills she doesn't need to declare this to tax credits at all. She is effectively better off by kicking him out and being a single mum ......

This is exactly why the maintenance disregard should be abolished asap.

lovetowinacar

Hi,

Many thanks for the replies I will pass the information on. Unfortunately, he does behave a bit "doormat" type but really loves his kids and tries to keep things simple and easy and is too nice if that is possible and goes along with what she wants pretty much.

I have suggested that he pays the correct amount to his ex but gets a place to stay and then any spare monies can go directly to spending on the children when they are with him rather than to the ex wife.

I so agree with comment that the government need to look at not disregarding child maintenance when working out income support/ child tax credits etc since some individuals receive lots and still qualify for benefits - a real loophole that needs sorting.