Splitting up - what happens to the profit from the house sale?

thorsoak

friendofchocolate wrote: »

Yes, Thorsoak, but I've no idea how much that will be - can't imagine it would cover rent & bills?

I think it may be 20% of his income - but if you go to the CSA website, you'll find out just how much it should be.

Also, you may be entitled to help towards the interest only on your mortgage from benefits - put your details in the Turn2us.org website - that should help you a little more.

newcook

So you expect to have £40k in the bank while us who work can pay for your rent?!

Your ex should be providing maintenance for your child which will help towards your housing costs.

fluffnutter

Dawning wrote: »

You need to adjust your mindset. You will be paying an essential living expense. I am guessing you see paying rent as 'frittering' money because you have the homeowner mindset?
I had the same thing when I got divorced. Had never rented, always had my own home (and mortgage). My exH kept our house, meanwhile I was 'having' to pay rent.
It ended up that I paid rent for two years, at the end of which I had only about £6k left. It is demoralising until you realise that it's just a fact of your new life. You can't let yourself get stuck thinking like this.

Crossposted with post #8

I suspect you're right but it's not just rent that the OP sees as something to 'fritter' money on. It's food as well!

I'm a little less charitable than you. What interests me is the idea that a full-time job is out of the question because the youngest child's only 18 months. It's not; it's just that it would have to pay enough to incorporate childcare costs too. Seems to me that not getting a job is a choice, not an inevitability. Perhaps the OP has got used to being a SAHM and simply doesn't want to deal with the fact that needs must and that option is now a luxury.

Incidentally, I assume the ex will be providing some money for his children..

friendofchocolate

Thank you for all the advice so far! I do appreciate the replies and for not being too flippant with me ...

Yes, I do understand why people would wonder that, Mrs Imp.

Mindset adjustment in progress.

fluffnutter

friendofchocolate wrote: »

I am a SAHM and as my youngest is only 18mths I don't really have any realistic prospect of getting full time work outside the home for at least another couple of years. I do a bit off freelance work but this only brings in maybe £1000-£1500 a year.

We are splitting up and with the profit from the house we'll probably end up with about £40k each. What I would like to know is what can be done with this? It's obviously not enough to buy somewhere else and I wouldn't get a mortgage anyway with no job. What I would want to do is put it in some kind of bond for a few years until my youngest is at school, at which point I can get a job again. Or even lock it away for 10 years until my oldest goes to university!

But I suspect that I will be obliged to simply fritter it away on rent and food until it's all gone - is that right? Thank you for any advice.

Obliged by whom? Do you mean the state? In which case are you going to claim benefits? I think you can choose to claim benefits if your child's not yet reached school age, but in doing so, you accept whatever conditions the state imposes, I'm afraid. And if this means that you'll have to use existing assets, then so be it.

friendofchocolate

Apologies for sounding lentil-weavery, *newcook*, but I'm bringing up the next generation. I would have hoped to have the £40k LOCKED AWAY FOR YEARS in the bank to provide for their future, specifically university, with a view to them becoming extremely useful economic contributers to society in a couple of decades :-D It's not quite as simple as "you paying my rent". I appreciate that this is the way the country currently works, however.

the_cat

What exactly is the point of having assets if not to see you through the bad times?

Why shouldn't you get a job, or perhaps develop the freelance work into something more of an income? Millions of women do, some by choice and others through necessity.

Why should you expect anyone other than yourself and your ex to pay for you and your kids, given that you have the means to do so?

Being a SAHM is a lifestyle choice, not an essential. Rather than look for creative ways to cheat the taxpayer into funding your choices, invest the same enthusiasm and flair in finding a way of supporting yourself!

thorsoak

Have you talked to a solicitor yet? Make sure that you choose one who is well-versed in obtaining the best possible financial outcome for you and your children!

MrsManda

Child maintenance payments will depend in part on your ex-partner's net income, how many children you have together and whether you are going to come to an agreement between you or ask the CSA to work it out.

As a basic idea, the CSA expect the non-resident parent to pay 15% of their net weekly income if they have one child, 20% if they've got two or 25% if they've got 3 or more.

As others have said, you will not be entitled to income based benefits such as housing benefit if you've got savings of over £16,000 though you can ring fence proceeds from the sale of a house for a certain length of time if you're planning on using it to buy another home.

Using money to buy food, clothe your children and pay for a home is not frittering away money - it's what it is there for.
However there is such thing as 'deprivation of capital' where if you are considered to have spent all your savings on unnecessary items in order to be eligible for benefits you are still counted as having those savings/capital.

The benefits system is there as a backup to provide the basics to those who without would suffer. The benefits system doesn't pay people to look after their own children. If you don't think it's fair that your ex-partner will be able to use the proceeds from the house to buy a house and you won't then perhaps you could negotiate a different split/settlement? Are you married? - I ask simply because in a divorce the fact you've stayed at home to look after the children while your partner worked gives you leverage.

You should be entitled to more child tax credits and if you go back to work you should receive tax credits towards childcare.

If you put your new household details into one of the benefits calculators below you'll get an idea of what you can claim.
http://www.turn2us.org.uk/benefits_search.aspx

http://www.direct.gov.uk/en/diol1/doitonline/doitonlinebycategory/dg_172666

You'll get more advice if you post on the benefits and tax credit board.

fluffnutter

friendofchocolate wrote: »

Apologies for sounding lentil-weavery, *newcook*, but I'm bringing up the next generation.

Sweetheart, 80% of adults have kids and are therefore 'bringing up the next generation'. This is not a burden that you're shouldering alone so please don't expect any special treatment.