Mortgaged house, splitting up with partner

martyn1978

getmore4less wrote: »

Keeping the house is a very risky long term commitment, mortgage and maintenance are things you don't want hanging round your neck for 20 years.

It is, for now, maybe things will be different in a couple of years when the children are a bit older, so them staying in the house for now and the next few years is the primary concern for us for now.

martyn1978

millysg1 wrote: »

Can she look for a part time job?

I would really like that to happen, and have wanted it to for a while. I am hoping so, but for now she isn't. If she and the boys are able to stay in the house, then she will. She is hampered by not being able to drive, so needs to know where she is living before taking a job on.

martyn1978

shoe*diva79 wrote: »

Clearly didnt read the OP post as it states 2 kids and not wanting them to leave the house!

OP, your ex would be entitled to Income Support, Child tax credits, child benefit, council tax benefit and child maintenance from yourself. You can use the online CSA calc to work out what your minimum obligation would be.

Her benefits alone would come to around £957 per month plus the child maintenance you would give her means she might be able to afford to stay in the house for the time being.

Thanks for this. Where would I go to find out all of this information and these entitlements?

shoe*diva79

You cannot put the mortgage in your sole name and your ex rent from you. Well, she could rent, but she wouldn't be entitled to any housing benefit as housing benefit does not cover renting from a relative or your childs other parent.

Google CSA calculator for Child Maintenance and https://www.entitledto.com for your ex to model how much in benefits she would get.

RAS

Go to www.turn2us.org.uk.

She could also claim Mortgage Interest Allowance. It only pays the interest and there are words that the Govt is intending sometim,e to translate this into a loan but at present she can claim if she is not working.

You may need to discuss short-term support and the longer term situation. If MIA was withdrawn for example, the finances would be completely different and once thew youngest reachs a certain age, she could be expected to work.

The most difficult bit is whilst the youngest is over 5 and she is expected to seek work but if she gets it loses the MIA.

Mojisola

martyn1978 wrote: »

The problem with selling is that where does she and the boys go then, with no or certainly very little money?

shoe*diva79 wrote: »

Google CSA calculator for Child Maintenance and https://www.entitledto.com for your ex to model how much in benefits she would get.

martyn - I think you could be shocked at how much money she will be able to claim.

pinkshoes

Why cant you live in the house and rent the spare rooms out to lodgers for extra income, then she and the kids can rent somewhere, where she could claim some benefits to help her plus child maintenance payments from you?

Have you tried counselling to make the marriage work?

Or you could live in the house with the kids, then she could rent elsewhere, and you could pay her for her childminding services?

Or stay living together in separate rooms?

TBagpuss

As PPs have said, you can't rent the house to her and have her claim benefits, as this would be a contrived tenancy.

As you are not married, the basic legal position is that you are each entitled to half the equity from the house, and if the boys live with her you are responsible for paying child support.

There is no such thing as a 'common law wife or husband' in England.

Could you afford the mortgage and cost of running the house if you were living there?

If your ex was able to cover the running costs, could you afford to rent elsewhere?

Whose name is the £6,000 debt in?

One option would be for you to buy her out. You would need to pay her 50% of the net equity, which would be about £10,750. This would take her outside the savings cap for means tested benefits initially, but you might be able to reduce this if you had an agreement that you would be responsible for the debt in return for paying her a lower sum.

She could use the lump sum to pay deposit and initial rent and could then claim housing benefit to cover the rent.

You would bneed to be able to take on the existing mortgage abnd extra borrowing.

2nd option would be for her to stay in the house and to pay the mortgage and other outgoings. She should be able to get help toward the mortgage in the short term. However, this only covers the interest so you may find (unless she is bale to make up the difference from other income) that you are then technically defaulting, and while the lender is unlikely to reposess in those circumstances, it will have an effect on your credit records.
It would be sensible for the two of you to have a separation agreement drawn up which was very clear about the responsibilities you each have (things like who is responsible for insurance, repairs, decoration etc) and when the house would be sold, and how the proceeds would be split at that time. It might be worth looking at an agreement for a limited time, perhaps to agree that the house goes on the market in 18 months time, so that you both have time to plan ahead and so that the boys can adjust to you and their mum having separate before they have to adjust to any move.

If your ex can get a job and work 16 hours a week then that is likely to improve matters as she will become eligable for tax credits rather than Income Support / JSA and may find it easier then to rent privately, and would also be able to keep her share of the sale proceeds rather than losing benefits until it dips below £6K.

Unfortunately, her moving out and you staying in the house may work better financially in term of her being able to claim housing benefit.

keith969

You really have but 1 option, that is to sell the house, pay off any debts, and split the proceeds between you.

She will have to find a place to rent and will get several benefits as others have mentioned, which ought to mean she can survive. They will have to accept they will have to move, but that's what happens.

You will end up paying maintenance and trying to rent a place of your own. That isn't going to be easy, seen that with one of my neighbours only recently.

Gigglepig

Can you stay in the house with the kids, and your ex rent nearby?