Splitting up help - income support and/or spousal support?

BoBoDobie

So, it looks like we're separating. Nothing has been decided yet but it looks pretty likely after the discussion we had last night. I'd spoke to the CAB a while ago as I wanted to be prepared if the worst came to the worst. They said as it would make me a single parent with a young baby, I'd get Income Support. I am self employed but work less than 16 hours a week. The business last year made a loss, this year things are looking better.

Apparently with income support I get add on benefits like help with the council tax, interest on the mortgage etc. My partner would pay child support on top of the income support (I think it's on top off, not sure if I would get some IS taken away?) They said you could stay on IS until my baby is of school age at which point I'd be expected to get a job - hopefully my business will have picked up by then anyway.

They suggested I speak to a family solicitor which I did and she said I could forget IS, I would have to find a job and claim working tax credits on top of which I would get spousal support from my husband. The figure she said I would get is basically half his monthly income. I don't think that is correct, he'd have hardly anything to live off? Plus I didn't want to get a job outside the home whilst she's so young, I don't mind doing my self employed bit in the evenings when she's in bed.

So who decides if I get Income Support or Spousal Support? Are the two mutually exclusive? I thought spousal support was something that rich people got, we're far from rich. I'm confused so any pointers would be great thank you .

DX2

The CAB are correct, the solicitor clearly doesn't have the first clue about benefits and as such shouldn't comment on them.

You need to know though if you are working even under 16 hours per week IS will deduct this. You get to keep the first £20 of your benefits then anything you earn after that they deduct £1 for £1. Child support no longer affects any benefits.

RAS

Spousal support is very very rarely granted these days. I suggest you get a solicitor who lives in the 21st century. You should get half the assets of the marriage and possibly more.

You will get 15% of your ex's net monthly income as child support.

What is your housing situation?

BoBoDobie

Thank you both. We have a mortgage in joint names. He is keen to sell up and move on but the CAB and solicitor said I'd probably be able to stay there. I said I couldn't afford to with the mortgage and bills but with the help I'd get from IS it may just be possible.

I suppose even if the business makes more than £20 per week, they'd just deduct the amount it was over and then I'd still get the add on benefits would I of help with the council tax and interest on the mortgage? How much is the maximum you are allowed to earn and still get IS? I'd hate to have to give up my self employment as it seems a backwards step.

Child support doesn't affect benefits - would spousal support? She was adamant that I would have to claim it, I really don't want to. He will go nuts if he has to pay spousal support. Child benefit he will pay no problems. I don't want to take spousal support from him, I don't want to feel beholden to him. He is bitter enough that I don't work whilst I bring up the baby and that's whilst we are together.

AMILLIONDOLLARS

Do you mind me asking, was your solicitor a man??

AMD

Just re-read your post, a women:rotfl:

DX2

Tye_Bo wrote: »

Thank you both. We have a mortgage in joint names. He is keen to sell up and move on but the CAB and solicitor said I'd probably be able to stay there. I said I couldn't afford to with the mortgage and bills but with the help I'd get from IS it may just be possible.

I suppose even if the business makes more than £20 per week, they'd just deduct the amount it was over and then I'd still get the add on benefits would I of help with the council tax and interest on the mortgage? How much is the maximum you are allowed to earn and still get IS? I'd hate to have to give up my self employment as it seems a backwards step.

Child support doesn't affect benefits - would spousal support? She was adamant that I would have to claim it, I really don't want to. He will go nuts if he has to pay spousal support. Child benefit he will pay no problems. I don't want to take spousal support from him, I don't want to feel beholden to him. He is bitter enough that I don't work whilst I bring up the baby and that's whilst we are together.

Yes spousal support will affect your IS.

IS is £64.50 per week so if you earn more than that you lose your entitlement along with your SMI payments.

DaisyFlower

Spousal support is very rare and usually only paid in cases where the other person cannot physically support themselves or where they have given up a high flying career to support their partner. Given you are working, its highly doubtful that you would have a case for support.

Any IS will have your earnings deducted from it and the help with the mortgage would only be on your half of the interest only. Unless you can afford to meet the rest of the mortgage payment then selling up and having a clean financial break may be better.

Whilst you may not want to work for a few more years, you may not have much choice if your few hours self employment doesnt cover all the bills.

Oldernotwiser

If you're working for a minimum of 16 hours at your business you could claim working Tax Credits but you couldn't get help with your mortgage. However, if you were to sell up and move into rented accommodation you would, however, be able to claim help with your rent.

Your solicitor sounds like an absolute idiot, I have to say!

BoBoDobie

So if I earn more than £64.50 per week, l loose all entitlement to Income Support and the add on benefits it brings? Whats SMI - the mortgage payments?

What you've all said about Spousal Support being rare I'm suprised then that she was so adamant that was the way to go. I wouldn't be against selling up but the money we'd get from the sale just wouldn't buy anything else. It's not gone up in price since we bought the house. There is some equity in it, enough to stop me from qualifying for IS but not enough to buy anything else.

Oh what a mess. I don't know what to do.

RAS

Hi

You really do need to put your circumstances into www.turn2us.org.uk.

You might get working tax credit, you might get SMI (yes it covers the interest on mortgage payments), if your child goes to child care, you might get CTC. You will get CT single person reduction, you might get CT benefit.

A solicitor is not a good person to advise on these and certainly cannot unless s/he has a full financial profile.

The solicitor can help you with the financial settlement as part of the divorce, which might well mean that you can stay in the house for a period of time, or until your child leaves school. The solicitor generally has nothing to do with child support. And as several of us said, spousal support is only really an issue with wealthy families, family comnpanies and those were older women have given up years of employment to keep house at their husbands' instance. Even then it is often for a set period to allow them to re-train and get back into the work place.

BoBoDobie

Thanks I'll try the link. I think I've done it before - I find them quite hard to answer as a lot of questions I just don't know and that will squew the results totally?