Advice needed

Dory78

It looks like my husband and I will be separating after around 11 yrs together and after looking at a few things it appears it would be easier for me to move out with our 5yr old daughter. I don't really want to get on the council list (nothing ever comes up in this area and I don't want her to move schools etc) so I would be looking at privately renting. I currently work part time (16 hrs a week) so I understand I should be entitled to a myriad of benefits but my question is this, our current home is mortgaged in both our names, does this property get taken into consideration when calculating my benefits? Even though I wouldn't be living in it and its mortgaged to the hilt (think it stands at about 90% atm)

Could someone point me in the right direction for info if you don't already know the answer to this one?

Thanks

Sublime_2

Dory78 wrote: »

It looks like my husband and I will be separating after around 11 yrs together and after looking at a few things it appears it would be easier for me to move out with our 5yr old daughter. I don't really want to get on the council list (nothing ever comes up in this area and I don't want her to move schools etc) so I would be looking at privately renting. I currently work part time (16 hrs a week) so I understand I should be entitled to a myriad of benefits but my question is this, our current home is mortgaged in both our names, does this property get taken into consideration when calculating my benefits? Even though I wouldn't be living in it and its mortgaged to the hilt (think it stands at about 90% atm)

Could someone point me in the right direction for info if you don't already know the answer to this one?

Thanks

It depends what equity is in it.

You will need to seek some professional advice in this matter, just so there aren't any grey areas to clear up later.

Dory78

Well with the existing mortgage plus the 2 home improvement loans we have on it and obviously depending on the exact valuation I'm guessing around £15-£20k equity which obviously would have to be split, but then we could argue as I've only been working part time for the past 2 yrs and previous to that not contributed financially at all that it should all be his anyways TBH I'm just interested in finding out whether or not it would affect any claim for any benefits at this stage not by how much. You mentioned professional advice - who would that be? Do you mean go to the council and ask them or....? (sorry really not used to the idea of benefits, before this the only one i'd claimed for was child benefit)

FBaby

don't know about benefits, but I wouldn't stand for you not being entitled to any equity, at least not in the past 2 years. You have worked, and have contributed to household bulls and by looking after your daughter. Your priority might be to get out and find somewhere else to live, but you might regret not fighting for what you might be entilted to at a later date.

Dory78

Oh you misunderstand I have no intention of letting him 'have' the house as it were, I'm thinking purely from a stand point of claiming the benefits. Its an amicable split but there is no way we could sell the house and split the proceeds and then both be able to find somewhere we could afford so one would need to stay in the house at least for the time being, I'm just worried about it affecting any claim I make.

Caz3121

If the property is up for sale they can ignore the equity value for a period of 26 weeks. Does he intend to buy you out?

Dory78

At this stage no, there's simply no way either one of us could afford to buy the other out. It would, ideally, remain in both our names until such time as its sold or one of us can buy the other out (although no plans for any of that in the short term) I should add this is a totally amicable split, no animosity on either front and in fact I will be remaining in our current house until such time as I can financially afford to move out (ie have enough saved to get things like hoovers, armchairs, a bed for me etc etc) Its kind of a work in progress! lol

AnxiousMum

Dory78 wrote: »

Well with the existing mortgage plus the 2 home improvement loans we have on it and obviously depending on the exact valuation I'm guessing around £15-£20k equity which obviously would have to be split, but then we could argue as I've only been working part time for the past 2 yrs and previous to that not contributed financially at all that it should all be his anyways

Uh no! lol - you've been staying at home, running the household, looking after children (who happen to be his too right?) There IS a value to what you have offered the relationship in the past. Had you both as a couple, not decided that you would stay home and run the house, you could've been out earning an income. However, you BOTH made that decision, and so by virtue of that, you have a stake in the house.
If you have the daughter living with you, and you don't want her to change schools etc., have you considered you remaining in the house with the daughter? Don't ever belittle the contributions to the household that you have made by being a wife and mother. We left those dark ages years and years ago.

NouveauRiche

I suggest that you speak to a solicitor. Many offer free 30 minutes consultations. I got divorced several years ago, and my ex-husband and I made a pact to talk to each other and discuss any letters that our solicitors would be sending out. (Sometimes solicitor's letters can sound much more demanding than the discussion you have had with them. It kind of looks worse in written form IYKWIM!)

It will also keep any solicitor's fees down if you and your husband discuss and agree things such as future pension rights, childcare, maintenance payments etc. before getting down to the legal "nitty gritty".

There really IS such a thing as an amicable divorce as long as you both keep your cool! We divorced 16 years ago, and there are never any problems with family celebrations, our children's weddings, births of our grandchildren etc. This really isn't hard to do, particularly if children are not used as pawns or bargaining tools on the journey of divorce.

Caz3121

If there are no plans to sell the house then it is likely to be classed as an asset and affect you getting means tested benefits - tax credits etc will be fine but you may find an issue with housing benefit. They will assess the equity share and treat it as if you have the money (after allowing for selling fees) if this leaves your share as under £6k you may be ok. It would make more sense for you to remain in the house or if the house is big enough to continue to live there but separately.

Dory78

AnxiousMum - I lol'd a lot at that! I know what you mean and I didn't mean it as in I'd had no part to play in the house at all, far from it, I suspect it would have fallen apart if I'd not done what I do! (if you get me! lol) However I meant purely on a financial standpoint he has paid more into it than i ever have.
As for me staying in the house, I doubt it'll financially be feasible. I wouldn't get anywhere close to the benefits I'd get if I moved out, plus he wouldn't then be able to afford another house or flat either. We have spent some time looking into this from a financial angle and it looks better if I were to move out as I'd get more help (housing benefit etc) whereas if I stayed put I wouldn't get that (afaik)