Now a single mum of 2 :( Where to start with sorting my money out? PLEASE HELP!

sweettirana

My partner (we are not married) has just left me

We have two children, one aged 2 and one aged 5 months and I don't know where to start sorting things out or even if I can continue living in our house.

I'm currently on maternity leave on SMP and before that I was earning £25k a year, I will only be going back to work 2 days a week in Feb for £10k (this was agreed before I left and very unlikely that I will be able to change it).

My current take home on SMP is approx £600 a month and when I go back to work this will be about £800 a month.... my mortgage is £600 alone, I just don't know how I am going to survive

Please can someone help, I'm in a right flap, but need to face up to things and deal with them.

TIA x

xylophone

Make an appointment to see a Benefits Adviser at the CAB.

princessdon

Pop your details into the calculator.

I hate saying this (but it's relevant in your situation). Model how it would be if you gave up work (for a while), and Income Support etc.

I am not advocating you DO give up work - just look at all situations before making a decision. Two kids on your own is tough. Maintenance is not included. Your career V working in the future also needs considered.

I just want you to look at all options when deciding. Hopefully working part time will be best - but as you are a mortgage (not rented) - it may not be the case.

pmlindyloo

sweettirana wrote: »

My partner (we are not married) has just left me

We have two children, one aged 2 and one aged 5 months and I don't know where to start sorting things out or even if I can continue living in our house.

I'm currently on maternity leave on SMP and before that I was earning £25k a year, I will only be going back to work 2 days a week in Feb for £10k (this was agreed before I left and very unlikely that I will be able to change it).

My current take home on SMP is approx £600 a month and when I go back to work this will be about £800 a month.... my mortgage is £600 alone, I just don't know how I am going to survive

Please can someone help, I'm in a right flap, but need to face up to things and deal with them.

TIA


If you have been claiming tax credits then you need to contact them to tell them about your change of circumstances.
If you aren't then you need to claim.
You will need to be working at least 16 hours a week to claim both working tax credits and child tax credits.
If you won't be doing 16 hours then you can still claim just the child tax credits.
Perhaps you will be able to make up your hours to the 16.


You may also be entitled to some Council tax benefit. You will be entitled to the 25 % discount as a single person.


So, tax credits, child benefit and council tax discount/benefit.


The other thing you need to consider is the house. Is this in your name/joint names? Have you discussed this with your ex ?


You need to discuss child support as well.


Depending on the house situation and what your ex agrees to pay in child support will determine whether you will be able to stay in the house.


You can use the benefit calculator on https://www.turn2us.org.uk (click on benefits on the banner at the top to see the calculator) to give you an idea of what help you might get.


Any child support will not affect your entitlement as regards benefits.

sweettirana

Thanks all for your help

He will probably only pay the amount that he has to, which judging by the calculators online will be £60 a week, but dread to think how long that will take to arrange

My 2 days a week when I go back will make 16 hours - I have applied for tax credits in the past but haven't been eligible as jointly we earned a fair bit (albeit with £800 a month childcare costs, but that is another story!)

I have tried using the calculators but it is hard to work out as last year I earnt a full salary and for the majority of this tax year I have/will be on SMP so is hard to tweak it, I put in £25k for year 11/12 and my SMP salary for year 12/13 but I think it assumes that I will be going back to a 25k job at the end of it

The house is jointly in our names although I paid the deposit for it from the sale of my previous property. He will let me continue to live here with the children, but to be honest, if I can't afford it I'm not bothered about the money I put into it, I just want to be happy and for children to be happy, I will walk away from it if I have to

princessdon

Re Tax Credits

Use your "salary" on your own. £100 pw is disregarded for Tax Credits on Maternity.

So remove £100 pw from your earnings to date for weeks on Mat Leave.

Eg if on Stat only from April 2012 - then your earnings to date are £0 (as £100 pw is disregarded). So only input your salary when you return to work.

From April this *may go up* - so again - change that to figures from April to give an idea. Ie do the calculator for April 12-13 and April 13 - 14. It is likely you will have different figures (from what you say).

you will now get 70% (based on 10K) for your childcare costs and meet the 30% alone.

If on Income Support (ie not working) -they pay your interest on the mortgage - not capital - to a value of under 4%. Depending on your rate with your bank - this may be something you need to add to.

That is why it is important to check everything out before making a decision.


If you decide to put the house on the market - Look at your councils LHR - to see what your allowance would be and check out housing in your area and the amout you have to play with.

barnaby-bear

sweettirana wrote: »

Thanks all for your help

He will probably only pay the amount that he has to, which judging by the calculators online will be £60 a week, but dread to think how long that will take to arrange

My 2 days a week when I go back will make 16 hours - I have applied for tax credits in the past but haven't been eligible as jointly we earned a fair bit (albeit with £800 a month childcare costs, but that is another story!)

I have tried using the calculators but it is hard to work out as last year I earnt a full salary and for the majority of this tax year I have/will be on SMP so is hard to tweak it, I put in £25k for year 11/12 and my SMP salary for year 12/13 but I think it assumes that I will be going back to a 25k job at the end of it

The house is jointly in our names although I paid the deposit for it from the sale of my previous property. He will let me continue to live here with the children, but to be honest, if I can't afford it I'm not bothered about the money I put into it, I just want to be happy and for children to be happy, I will walk away from it if I have to

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/Mortgagesandrepossessions/DG_180066
http://www.consumeractiongroup.co.uk/forum/showthread.php?194815-JSA-and-mortgage-interest-paid-HELP!!!!

pmlindyloo

I do agree with the posters who are suggesting that you check out what money you would get if you gave up work for the moment.

You would be entitled to Income Support, Child tax credits, Council tax benefit and most importantly, after 13 weeks, housing costs (SMI)


If you visited CAB they would do, what is called, a 'better off' calculation where they would look at the two scenarios.


I am not one to urge people to go on benefits but such is the system that with high child care costs you may be better off waiting until you can return to full time work when the children are of school age.


If there is equity in the property it may be that selling up is something you should consider.


Hope things work out for you.

Cornish_piskie

sweettirana wrote: »

My partner (we are not married) has just left me

We have two children, one aged 2 and one aged 5 months and I don't know where to start sorting things out or even if I can continue living in our house.

I'm currently on maternity leave on SMP and before that I was earning £25k a year, I will only be going back to work 2 days a week in Feb for £10k (this was agreed before I left and very unlikely that I will be able to change it).

My current take home on SMP is approx £600 a month and when I go back to work this will be about £800 a month.... my mortgage is £600 alone, I just don't know how I am going to survive

Please can someone help, I'm in a right flap, but need to face up to things and deal with them.

TIA x

Hi OP

First off, sorry to hear of your situation. I hope you've got friends and family nearby to support you.

On a practical note, I reckon you absolutely can do it:D Your figures are very similar to mine when I became a single mum and I really did manage just fine. First of all, as others have said, pop your details into the turn2us calculator to see roughly what you might get. When you claim the tax credits (CTC and WTC too if you'll be working 16 hrs +) tell them your projected income for the year and any childcare costs (registered childcare) and they will base your award on this amount. Also, if you are using a registered childminder or nursery remember you will be able to get up to 70% of this cost in the CTC/WTC award (from what you say your salary will be I would think you'd qualify for the full 70%).

Next, have a look at your local council website - they will normally have a benefits calculator which will indicate whether you might be entitled to some Council Tax Benefit. This might come out at just a few pounds per week but added up over the year will be a very useful amount. Don't forget also to let them know there is only one adult in the household to have your CT reduced by 25%

Your ex needs to contribute to the upbringing of his children from the get go - not when he feels like it. Easier said than done but you need to be firm here, let him know that an amicable, private agreement will be in his favour and much easier on all concerned than getting the CSA involved. I found that shrugging my shoulders and saying that I would ask my ex's parents to do some extra shopping for me and the kids or that I'd ask our closest friends if they could help me out worked a treat - his ego wouldn't stand for having everyone he knew knowing he wasn't providing for his children :cool:

So, once you have your figures (and this is do-able pretty swiftly) just add them up:

Salary + Child Benefit + CTC + WTC + ?CTB + child support

Is the mortgage in both names? Are there any joint debts/loans secured or unsecured? If so, please ensure you get some proper legal advice from a solicitor specialising in divorce/family law.

It will feel very daunting and scary at first but once you have some concrete figures on your future finances you will be over that first hurdle. Strangely, I also found that being pro-active and getting all the practical stuff sorted actually helped me cope in the early days of separation. Good luck xx

MissMoneypenny

pmlindyloo wrote: »

You would be entitled to Income Support, Child tax credits, Council tax benefit and most importantly, after 13 weeks, housing costs (SMI)

You need to read this too; about what the government will and won't pay, towards your mortgage
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321