Help to get my children what they are entitled to without my benefits being affected.

saz007

I am on employment and support allowance as I suffer from ME and POTS syndrome, at the minute I have got no savings but I am in the final stages of a divorce and after the sale of my marital home there is £30,000 equity which is being held by the solicitor who sold my house and he is awaiting instructions from my soon to be ex-husband solicitor and my solicitor.
I have been separated for almost 5 years, my ex has made everything as hard as possible for me even though the breakup was due to him cheating on me, I was married for 10 years when I couldn't take anymore **it and ended the relationship. He refused to leave our family home and I was forced to go into rented property, I continued to work until I became ill about 1 1/2 years ago. I have had a medical which stated I'm not fit for work, so I get employment and support allowance and housing benefit.
I have got 2 daughters the eldest is 16 next week, she has just left school and is going to full time college in september and the youngest is 14 years old.
My Ex doesnt want me to have a penny because I chose to leave. My solicitor said I am entiteled to £20,000 because I have the children but for all the hasstle and threats I recieved for even asking for an equal share I told my solicitor that I wanted the money shared equally, My ex is still not happy with this and he has offered me £6000 because he said anymore will affect my benefits and he wants the £24,000 for himself.
My question is how much savings am I allowed because I know the benefits change all the time and my solicitor isnt sure and if I get £6000 could I then order him pay £4500 into each of my daughters bank accounts which will help them through college and would their savings affect my benefits? also if this is allowed would each of my daughters money have to be put into an ICA where they can't access it or could it be in a nomal account to use now for help through college?
What ever money I was going to get from my divorce I was going to give my girls a share between them as they have also been through a tough time. Originally I wanted to put for example, £4500 in a savings account each for them to give them a head start when they are older as I am no longer in a position to help them as much as I would like, but as almost 5 years have passed and this is still not resolved £4500 would be more beneficial for them to have access to these funds during college and hopefully university when they will need the money the most and hopefully give them the incentive to go as far as they can so they don't get fed up of all study no play.
My motive is not to hide funds or to scam the system, My girls are 14 and almost 16 and I want to give them the best start in life that I can.
I only want £6000 to pay off my debt which I have had to get into to buy all of my furniture as my ex wouldn't even give me my daughters beds when I left and when I could no longer work I went through a difficult time and it's only the past 6 months that my benefits have been sorted properly, I have struggled every day when my ex earns £1500 at least per week and he gives the girls nothing and insted gets botox and takes trips to New York. He can make £9000 in just over a month and I would rather that money go towards our childrens future than him spend it on steroids, coke and botox.
Does anyone know if there is anyway that my children could benefit from the other £9000 that I am entitled to but I can't get without it affect my benefits?

BigAunty

saz007 wrote: »

...
My question is how much savings am I allowed because I know the benefits change all the time and my solicitor isnt sure ..

Does anyone know if there is anyway that my children could benefit from the other £9000 that I am entitled to but I can't get without it affect my benefits?

Sums over 6k start to affect income related benefits like housing benefit and council tax while sums over 16k rule them out.

I can't answer your other financial queries, other than to advise you to research 'deprivation of capital' and notional capital which is where the local council or DWP seek to identify claimants who deliberately give away or spend their money in order to claim means tested benefits. Suggest you find the DWP decision makers guide on the internet which is the staff manual as even though its for the DWP staff, it helps claimants understand what is considered to be intentional deprivation of capital.

For example, typical household purchases like furniture, repairs, refurbishment/decoration are permitted and so too are debt payments where there is a legal obligation to pay them (but not where they are paid off early, for example, a lump sum paid towards a mortgage or loan paid ahead of the repayment deadline).

Not sure why you want to reward your husband with a greater share than he is entitled because even though you may have to spend the sum above the capital limits on rent, council tax and so on, at least it's not being spent on botox for his face...

rogerblack

In general, if you had the ability to get through the courts, or actually got, and gave away (put in trust) money you could have been awarded - this will count as deprivation of capital, and you will be treated as if you still had it.
This will mean you have 'notional capital' of 9000 (4500*2) that is added onto the amount you actually have available.

This would mean that even if you had none of the 6k left over left - you would be treated as if you had 9K left.
this would reduce your benefits by 9000-6000 / 250 = 12 pounds a week for ESA, and similarly for CTB.

Paying of debts, other than ones that they are banging on the door about, or that have extreme interest rates also may be counted as deprivation.

saz007

Your right I'm going to get what I deserve... what's mine, most of my debt is in the red and overdue so that will be great just not to have to worry about that and to be up to date with every thing again at least if I'm still unfit to work and need to eventually go back on benefits my money will go further as most of my debt will be paid off, thankyou for your help I needed someone on the outside to state the facts because Ive got so much going on in my head. I'm going to go to the citizens advice with all my debt and explain the equity, benefits etc. to them and i'll see if anything can be put in place for the girls.

BigAunty

Yes, make sure you get expert advice about deprivation of capital as we've only outlined the basics, it's complex.

As a basic principle, you are expected to use money you receive that replaces means tested benefits on your everyday living expenses, but this does include things like holidays and so forth (assuming they aren't too extravagant, I expect).

Keep receipts for everything you spend which will help you if there is ever an investigation by the DWP/council.

I can't see how you can set aside a lump sum for your girls without this affecting your benefits but check with the solictor. If you take the 20k that you are expected out of the 30k equity, this at least this won't be spent by your coke addled ex on trips to New York. At least you will be independent for a bit.

The DirectGov website has excellent information about debt management, and there's a debt free wanabee board on this website, too.

xylophone

It does not appear that legally the money has to be split 50/50? If legally you had to be given half, then not taking that half would seem to me to be DOC.

However, this seems to be open to negotiation between your respective solicitors? Have you asked your solicitor whether it would be possible (within the DOC rules) for there to be a clause that reasonable provision should be made for your children from the proceeds of the house sale so that for example, it was agreed that a JISA for £3600 was opened for each child?

I don't know, but your solicitor should be able to research and advise - it is what you are paying him for!

grummps

Am I right in what I am reading.

£30,000 equity
Poster is on means tested benefits.?

If the poster received anything over £6000, it will affect her benefits. So in effect if she received £20,000, she would have to spend £14,000 of it on rent and living costs before full benefits could be re-instated. Effectively, she will not see the benefit of that £14,000, the government will - by not paying out her benefits.

Husband would have £10,000, the government would get £14,000 (in savings) and the poster would get £6000.


If she received £6000 only, then she would carry on as she is now.

Husband would have £24,000, the government zero and the poster £6000.



In the end she will be no better off or worse off by accepting anything more than £6000.

BigAunty

grummps wrote: »

Am I right in what I am reading.

£30,000 equity
Poster is on means tested benefits.?

If the poster received anything over £6000, it will affect her benefits. So in effect if she received £20,000, she would have to spend £14,000 of it on rent and living costs before full benefits could be re-instated. Effectively, she will not see the benefit of that £14,000, the government will - by not paying out her benefits.

Husband would have £10,000, the government would get £14,000 (in savings) and the poster would get £6000.


If she received £6000 only, then she would carry on as she is now.

Husband would have £24,000, the government zero and the poster £6000.



In the end she will be no better off or worse off by accepting anything more than £6000.

Seems to be an accurate summary of the position but I dispute that the government gets her savings and that she's no better off.

An alternative viewpoint would be that she has the means to support herself when she gets this lump sum and she saves the taxpayer thousands.

She can probably resolve her debts (if they are legally due), treat her family to a holiday, perhaps buy a car - all the conventional things that perhaps she's deprived from doing on her subsistence benefits at the moment.

She gets the benefit of knowing she's paying her own way and is independent of state support for a period of time.

She might feel psychologically better off, too, for being able to have a few treats and also knowing that she's deprived her ex of some leisure money so that she buy basics with it.

So do you want households with nest eggs of 20, 30, 40, 50k to be able to have all their basic living expenses - rent, council tax, food, clothes, household bills - paid for indefinately by benefits?

thorsoak

As the OP wishes the money to benefit her daughters, can it not be agreed between the solicitors that it goes directly into a beneficial trust for the girls? Would that be legal?

rogerblack

BigAunty wrote: »

She can probably resolve her debts (if they are legally due), treat her family to a holiday, perhaps buy a car - all the conventional things that perhaps she's deprived from doing on her subsistence benefits at the moment.

Unfortunately, this isn't the case.

If she lives in any way as if she is on more than a subsistence amount, she is up to the mercy of a single decisionmaker.
If they choose to decide that her purchases of a car, holiday or even groceries are excessive - there is little effective recourse.
She will be treated as if she has the money she's already spent, possibly with lasting effects on benefits totalling over the amount given, in the worst case.

Being given a large amount of money, and then told you can only spend it as if you were still on benefits is at best a mixed blessing.

Certainly, she can pay legally due debts.
But not any other debts that may be hanging over her head.

saz007

I'm just wondering if the following is legal and within the rules...

He has offered me £6000
If I then accept the £6000 on the condition that out of his remainding £24,000 he then gives the girls £4500 each.

So I will get a cheque for £6000

He will get a cheque for £24,000

He writes 2 £4500 cheque's for both of the girls.

So I will not be giving my money away as I only have £6000 but my girls gain £4500 each from their Dad weather its in an ica account or trust fund or whatever, They then get what they deserve to give them the best start possible.
If he refuses this offer I could then say I want the £20,000 that im entitled to as I'll need as much as I can to pay my rent, kids through college etc etc

Would it be legal?
Would their savings still affect my benefits?