Complicated doesn't cut it

nannytone_2

whiteknight....
since april of last year, maintenance isnt counted when working out entitlement to means tested benefit.

Night_and_Day

nannytone wrote: »

whiteknight....
since april of last year, maintenance isnt counted when working out entitlement to means tested benefit.

Hi I think whiteknight was referring to maintenance paid for a partner's benefit, above and beyond that paid for the children.

A friend of mine recently split from her husband, who was willing to give her about £150 in excess of the CSA recommended amount of child maintenance. When she applied for income support, they actually "laughed" at her on the phone when she disclosed the child maintenance, telling her that the excess would be deemed to be for her own benefit, or words to that effect. They said she had no entitlement to income support - it's that easy to be excluded from it!

nannytone_2

she should have appealed the decision then.
there is no rule that says child maintenance has to be paid at the CSA rate, and in fact the rate that the CSA set is the minimum that should be paid.
unless it is set down as 'spousal support' ( which is very rare these days, as women are quite rightly expected to support themselves after divorce) it is classed as child maintenance and would not exclude the mother from means tested benefit.

Night_and_Day

nannytone wrote: »

she should have appealed the decision then.
there is no rule that says child maintenance has to be paid at the CSA rate, and in fact the rate that the CSA set is the minimum that should be paid.
unless it is set down as 'spousal support' ( which is very rare these days, as women are quite rightly expected to support themselves after divorce) it is classed as child maintenance and would not exclude the mother from means tested benefit.

Hmm, wonder if the person on the other end of the phone was one of those "generic" operators that Oldernotwiser was referring to earlier!

Fiddlestick

Night_and_Day wrote: »

I get made redundant and we decide to buy two more properties (C & D) on new mortgages, to let out.

Christ, no wonder the country has gone to pot when banks are willing to lend to people who have just been made redundant!

Night_and_Day

Fiddlestick wrote: »

Christ, no wonder the country has gone to pot when banks are willing to lend to people who have just been made redundant!

Lol. Ex-hubby's income exceeded the lender's minimum income requirement for buy-to-let mortgages. I went on as joint owner because it seemed the right thing to do with us being married. Also with the intention of reducing his income tax liability on future profits, and using both our CGT allowances upon sale, neither of which I really care about anymore.

MissMoneypenny

I think you might need to sit down and work out what is best/safest for you and the children now (as oppose to leaving money to children when you die)? The risks you took as a couple might be different to the risks you are prepared to take as a single parent.

Night_and_Day wrote: »

He had to take out a personal loan to buy furniture for his new house and he is going to struggle financially too.

How will you cope if there are voids on your 2 remaining rentals as the mortgages will still have to be paid? Or something major happens for repairs on any of the 4 houses i.e. new boiler? You and your husband may be prepared to live without a boiler but you won't be able to do that if it is one of the rentals.

I know you said he is decent, but you might want to think about protecting you and the children, just in case. Go the the marriages board and read the posts from people who thought their ex would keep paying "because he was a decent father". Then read the CSA board from single mothers who get left high and dry when their ex meets a new partner; read the posts on that same board from some second wives who object to their husbands paying for the children from their first marriage; CSA reductions when children arrive in the ex's household (his or his partners).

Perhaps have a look at the mortgages board too, as some lenders are now asking for proof of a repayment vehicle on residential interest only mortgages like yours. If you can't provide this, you will be stuck on their SVR instead of being able to fix when the interest rate rises. Being on a SVR may be ok when there are 2 to take the risk, but the risk doesn't look so good when you are a single parent on a fixed income.

I don't mean to scare you, but it might be best to look at the worst scenario so that you get some security and peace of mind now?

Night_and_Day

MissMoneypenny wrote: »

I think you might need to sit down and work out what is best/safest for you and the children now (as oppose to leaving money to children when you die)? The risks you took as a couple might be different to the risks you are prepared to take as a single parent.



How will you cope if there are voids on your 2 remaining rentals as the mortgages will still have to be paid? Or something major happens for repairs on any of the 4 houses i.e. new boiler? You and your husband may be prepared to live without a boiler but you won't be able to do that if it is one of the rentals.

I know you said he is decent, but you might want to think about protecting you and the children, just in case. Go the the marriages board and read the posts from people who thought their ex would keep paying "because he was a decent father". Then read the CSA board from single mothers who get left high and dry when their ex meets a new partner; read the posts on that same board from some second wives who object to their husbands paying for the children from their first marriage; CSA reductions when children arrive in the ex's household (his or his partners).

Perhaps have a look at the mortgages board too, as some lenders are now asking for proof of a repayment vehicle on residential interest only mortgages like yours. If you can't provide this, you will be stuck on their SVR instead of being able to fix when the interest rate rises. Being on a SVR may be ok when there are 2 to take the risk, but the risk doesn't look so good when you are a single parent on a fixed income.

I don't mean to scare you, but it might be best to look at the worst scenario so that you get some security and peace of mind now?

Yessssh MisshhhMoneypenny (lol). Thank you for your advice.

Yes I think I'm being a bit ambitious in all of this. I just hate to admit defeat, I've always controlled our finances (as you can probably tell). The solicitor this morning said he was happy to do all the transfers as they sounded fair however he couldn't advise on benefit matters. He can put me in touch with a specialist solicitor in Glasgow, which is what I'll probably do next as the final resort. Saw a lady at the citizens advice this morning and she knew far less than I because of all the research I've been doing. I can't discuss the scenario at length with a DWP adviser because in doing so, I alert them to what they may class as potential fraud anyway.

If we split things traditionally, he can afford to convert his own mortgage to a repayment one and will be mortgage-free in retirement. Whereas I could only ever afford my mortgage on an interest-only basis (even with future earnings) and would lose my home at retirement.

The lender for my own home is happy to keep giving me new deals whenever the special rate expires, even with my ex moving out, so that's ok (he's still named on it). I won't have to pay SVR. We are setting aside a bit of money for rental voids and we have a £7K overdraft available on his current account that we could use before being forced into selling. I'm thinking of just maybe reviewing the situation in a few years. If the rentals haven't increased much in value then there's little point in hanging onto them with all the hassle involved. The capital growth potential will never be what it once was, but it has to be there in some shape or form to make it worthwhile.

Sigh, such a headache after today. Have to try and pick myself up now for my daughter's birthday ice disco tonight! lol

MissMoneypenny

Night_and_Day wrote: »

If we split things traditionally, he can afford to convert his own mortgage to a repayment one and will be mortgage-free in retirement. Whereas I could only ever afford my mortgage on an interest-only basis (even with future earnings) and would lose my home at retirement.

"Traditionally" isn't just 50% each of the 4 houses. There are many other factors to consider, like his pension value and the fact his earning potential is higher than yours, as you looked after yours (and his) children while you were married. You may find your share is greater than 50%. I'm not sure what the laws are in Scotland, but have you taken legal advice from a good solicitor in the field of divorce and splitting finances, to find out what your share will be if you divide it all now?

Night_and_Day wrote: »

The lender for my own home is happy to keep giving me new deals whenever the special rate expires, even with my ex moving out, so that's ok (he's still named on it). I won't have to pay SVR.

OK..... but remember that lenders are happy to give you an umbrella when the sun is shining and not so keen to do so when it's raining.

Night_and_Day wrote: »

I'm thinking of just maybe reviewing the situation in a few years. If the rentals haven't increased much in value then there's little point in hanging onto them with all the hassle involved.

Another thing to consider is, what if they have decreased in value in this time?

Night_and_Day wrote: »

Sigh, such a headache after today. Have to try and pick myself up now for my daughter's birthday ice disco tonight! lol

It's a headache to get all the facts and make an informed decision, but such a relief when you get some security. Who knows what the future holds; in a couple of years time you could have met someone and/or have a job and life that you love.

I hope your daughter has a good party.

Night_and_Day

MissMoneypenny wrote: »

"Traditionally" isn't just 50% each of the 4 houses. There are many other factors to consider, like his pension value and the fact his earning potential is higher than yours, as you looked after yours (and his) children while you were married. You may find your share is greater than 50%. I'm not sure what the laws are in Scotland, but have you taken legal advice from a good solicitor in the field of divorce and splitting finances, to find out what your share will be if you divide it all now?....


Another thing to consider is, what if they have decreased in value in this time?....


I hope your daughter has a good party.

The solicitor I spoke to on Friday did say there were many other factors to consider other than just money. Ironically I was always the highest earner until I was made redundant; I then doubled my redundancy money on the stockmarket during 2008. I am the only one with occupational pensions built up, and of course he's entitled to half of all of this I realise I am very fortunate compared to many people, I've never lost sight of this. But if there is a way I can juggle our finances favourably, within acceptable DWP limits, then I'd be foolish not to do so.

Our LTVs are 75% so we can cope with more price decreases if necessary. I knew BTL was a gamble and was prepared for the risk; I just didn't factor in the human risk of separation!

The party was great thank you