Complicated doesn't cut it

Muttleythefrog

Agree that you need to seek advice from a lawyer probably with specialist knowledge of benefits, family and property law. For means testing, 'income' and 'savings/capital' are key... and both of these will be fairly complex matters I would expect in your case. As above... I would not accept the view of someone on the phone at the DWP... certainly not on matters as significant and potentially complex as this unless it was their legal department and the advice comes in writing..lol.

Sixer

Night_and_Day wrote: »

But if I have made no financial contribution to the properties I'm handing over, and if I have no personal income to pay my own substantial mortgage which ex-hubby is agreeing to pay on my behalf, I think that sounds a pretty fair deal.

I'm not saying the division you have agreed isn't reasonable under the definition of reasonable in law or as recognised by the DWP - no idea if it is or it isn't.

However, what you're missing is that when a marriage breaks up and assets are to be divided, whose wages paid for what assets is not relevant. Marital assets acquired during the marriage are joint assets, regardless of what each partner earned or what role they took within the family (ie breadwinner or homemaker or any combination of both). As far as division of assets - and thus the DWP - is concerned, you both bought the properties.

dseventy

Night_and_Day wrote: »

But if I have made no financial contribution to the properties I'm handing over, and if I have no personal income to pay my own substantial mortgage which ex-hubby is agreeing to pay on my behalf,.

Its not about that, you are married so you share assetts, you ma have not paid anything personally, but you were married so its shared.

Night_and_Day wrote: »

I think that sounds a pretty fair deal.

With respect, I don't think the tax payer is getting a "fair deal". Giving away interests in property to claim means tested benefits is not fair either.

D70

Night_and_Day

You all sound so correct. Sadly it's just not what I want to hear lol.

I guess what annoys me is that had we chosen to reduce our main mortgage instead of investing in let property, I would now have a smaller mortgage to maintain and absolutely no income source or capital elsewhere therefore the taxpayer would keep me alive. I took an investment gamble and now the taxpayer says "on your bike". Sigh, could be worse. At least I have healthy children and a roof over our heads (well, four roofs to be precise hehe).

I recently went to see a Family Lawyer (only 2 in my little Scottish town!). After my opening line, I struggled to get a word in edgeways, the appointment ran on by half an hour, and he spent 3/4 of the time referring to past cases he had handled. Oh, and next time I would be charged £130 per hour to sit through it all again lol. Not. Put me off Family Lawyers, would rather buy a DIY kit from WHSmith.

Night_and_Day

Mmmm, just thought of another possibility. If we went ahead and sold the let properties, would I be allowed to use the proceeds to reduce my mortgage (not by much) or would the DWP expect me to live off the proceeds until they drop below the £16K mark??

nannytone_2

no you wouldnt. it would be seen as 'deprivation of capital' and you would be assessed as though you still had it.
you are allowed to use the money to pay your 'usual' amount, but not to overpay it.

hindsight is a wonderful thing!

Muttleythefrog

Night_and_Day wrote: »

Mmmm, just thought of another possibility. If we went ahead and sold the let properties, would I be allowed to use the proceeds to reduce my mortgage (not by much) or would the DWP expect me to live off the proceeds until they drop below the £16K mark??

On the general question of 'is mortgage capital overpayments a deprivation of capital' it is debatable... I think it can go either way..lol. Comes down to a question of 'did this person make the payments so as to gain benefits'. In your case I suspect it likely they'd say yes. In my own case I was quite comfortable doing it since in making the payments I ended up reducing the amount of overall benefits I'd get. I made the overpayments for mental health and practical reasons.

Night_and_Day

Cheers guys. Ach, it was worth a shot. I went down fighting, at least.

No doubt the property solicitor will knock some sense into me tomorrow. I actually want my ex to hold onto the properties because I know the money will eventually pass to our children. Selling them now means less for them when we croak.

Night_and_Day

Muttleythefrog wrote: »

On the general question of 'is mortgage capital overpayments a deprivation of capital' it is debatable... I think it can go either way..lol. Comes down to a question of 'did this person make the payments so as to gain benefits'. In your case I suspect it likely they'd say yes. In my own case I was quite comfortable doing it since in making the payments I ended up reducing the amount of overall benefits I'd get. I made the overpayments for mental health and practical reasons.

What happened to you Muttley, if you don't mind me asking? (no probs if you'd rather not say)

Cornish_piskie

Hi OP - it's nice to hear about an amicable split but I'm going to slightly put the cat amongst the pigeons here:o What happens when you meet someone new - is your ex-hubby still going to be cheerful about paying the mortgage on the home you are living in? It's all very 'easy' just using one of the houses to live in and I can see entirely why you are doing it but I can see resentment down the line. Personally, I would think a proper division of assets and then sorting out living arrangements from there. It is far better to make clean breaks on financial matters, you will always have the bond of your children