Hi may i have some help please :)

debtmess

Monday i was in court with the ex for a financial dispute which is now over and i was basically given 28k via the courts from ex husband (wont and don't want to go into details over it)

anyway as soon as im divorced (jan time) the money gets sent to my solicitors, they will have to take legal aid costs from it leaving me the remainder

im stuck as there will be around 19k left after all this but the courts basically made him up his offer to take into account debt we had together and that the money is to be used to pay that off (around 9k) leaving me the remainder (10 ish but could be little more or less no exact figures from solicitor over legal aid costs yet but expecting to hear from her soon)

im ok with the above iykwim the legal aid and debts have to be paid, what worries me is when the remainder gets credited and i have to pay the debts im now worried i will be done for deprevation of capital, i fully intend to tell dwp when i know the exact amount i have left so they can recalculate is and hb appropriately

if i have a court order (which will will have) will it still be seen as deprevation of capital iykwim.

if it helps with answers im a lone parent (3 children), on is and careers allowance as i get dla for youngest child (autistic spectrum) ctc hb and council tax credit.

thank you x vie lost one worry and gained another

hbgirl

paying off debts would not normally be seen as deprivation. unless they are dubious debts, eg paying back relatives from years and years ago with no evidence at all.

if you can show you are obliged to clear these debts, and can provide evidence that is what you did, it should not be seen as deprivation.

hope that helps.

debtmess

thank you
its a loan and a credit card both to barclays via a dca so paperwork to back it up plus court documents x

im now not so worried that in dwp's eyes im doing the wrong thing when its what the courts made him up the amount to if that makes sense

McKneff

hbgirl wrote: »

paying off debts would not normally be seen as deprivation. unless they are dubious debts, eg paying back relatives from years and years ago with no evidence at all.

if you can show you are obliged to clear these debts, and can provide evidence that is what you did, it should not be seen as deprivation.

hope that helps.

I think the bold information is wrong but I am happy to be corrected if i am wrong.

I wouldnt have thought it would be okay to pay off any debts and then claim any means tested benefits. (not saying that you are going to but)

You would be better going to the CAB or talking to the DWP

Mojisola

I agree with McKneff - paying back debts that you didn't have to pay back is taken as deprivation of capital.

In this instance, as you've been ordered to pay by a court, it may be different but you will need to get it in writing from the DWP to protect yourself.

hbgirl

i've made many decisions on deprivation (housing benefit not DWP benefits, but rules v similar if not the same).

you have to show that the "significant operative purpose" of disposing of the money was in order to claim benefits. very few decisions on deprivation are upheld at appeal.

the main reason the OP is going to spend this money, is because she was awarded money for the purpose of clearing debts.

i would be very confident if you have the relevant paperwork, especially if the court has ordered your ex to pay extra specifically because of the debts, that they would not make a decision of deprivation.

hbgirl

mind you, i'm not saying don't speak to DWP or cab before taking action, that is good advice also.

Kimitatsu

I agree with hbgirl - if you have to use the money as ordered by the court then this will not be seen as deprivation of capital. The court will uphold its own ruling, so if you went to the LHA or DWP with the court order and they told you it was deprivation of capital, you could take the DWP to court for challenging a legal ruling (hope that makes sense!)

Will the solicitors not pay the debts for you anyway under the terms of the order - then the whole thing is out of your hands anyway.

debtmess

thank you Kimitatsu and thats an idea x i will ask if they can arrange to pay them before remainder is released to me

debtmess

just an update for those who kindly helped me

the solicitors are going to clear anything outstanding asap x before rest is released to me , i will then need to contact dwp as will have a little over the allowed savings limit, can anyone let me know if the info she found for me was correct in that for every 250 over the allowed limit there is a set amount they deduct

its looking to be around feb time i receive this x