Please advise on income and effect on benefits?

lindsey3uk

Hi guys,
I cant seem to find a definitive answer online and I know you have all been so helpful in the past.


Further to my older posts my ex husband and I have now sold our property and with a solicitor decided to split the equity 70/30 in his favour as I have never contributed to the property.


This is due to all go through within the next couple of weeks and will leave me with capital of about £15,000.


I am currently in receipt of income support, housing benefit, council tax benefit, child tax credits for 3 x children who live with me. Obviously I know this will have an effect on these benefits but I am wondering if somebody can tell me what ones are effected? I know the IS and HB for sure but wasn't sure on the CTC and does anybody know how much at all?


Thank you in advance.
Lindsey

nannytone_2

any amount over 6k will affect your means tested benefits ( income support, housing benefit and council tax support)
they will deduct £1 from each benefit for every £250 you have over the 6k. so £4 for every 1k above the 6 k = £36 a week loss on each
no means tested benefits would be payable if your savings/capital were over 16k

Robbie64

So long as you remain entitled to some Income Support then Housing Benefit will not be affected by having £15,000 in the bank. This is because all deductions for having capital above £6,000 will be made to Income Support. Council Tax Support may be affected though as local authorities can set their own rules.

missbiggles1

lindsey3uk wrote: »

Hi guys,
I cant seem to find a definitive answer online and I know you have all been so helpful in the past.


Further to my older posts my ex husband and I have now sold our property and with a solicitor decided to split the equity 70/30 in his favour as I have never contributed to the property.


This is due to all go through within the next couple of weeks and will leave me with capital of about £15,000.


I am currently in receipt of income support, housing benefit, council tax benefit, child tax credits for 3 x children who live with me. Obviously I know this will have an effect on these benefits but I am wondering if somebody can tell me what ones are effected? I know the IS and HB for sure but wasn't sure on the CTC and does anybody know how much at all?


Thank you in advance.
Lindsey

Is there any real reason for you to get such a low share of the equity when child rearing is usually seen as a valid contribution to the marriage?

lindsey3uk

We have been seperated for over 2 years. He has lived in and shared childcare of my 3 children in the flat during this time and still pays me maintenance of £100 a week. I have never paid a penny towards the flat during our time together or after seperation. That is the only real reason.

With regards to the conflicting answers above will the £36 a week be taken from each means tested benefit or from just one of them?
TIA

HappyMJ

lindsey3uk wrote: »

We have been seperated for over 2 years. He has lived in and shared childcare of my 3 children in the flat during this time and still pays me maintenance of £100 a week. I have never paid a penny towards the flat during our time together or after seperation. That is the only real reason.

With regards to the conflicting answers above will the £36 a week be taken from each means tested benefit or from just one of them?
TIA

Just one of them. Entitlement to any amount of income based IS/JSA will get the full amount of HB. The £36 will be deducted from IS/JSA. If no monetary award of income based IS/JSA is payable then the £36 is deducted from HB.

It gets a bit more confusing with contributions based benefits as they do not entitle a claimant to full HB so the £36 is deducted from HB.

lindsey3uk

Thank you for clarifying that for me. Started to panic a bit there!

pmlindyloo

It might be sensible for you to keep a copy of the divorce agreement showing how the money was divided or any paperwork pertaining to this.

This way if they ever question deprivation of capital then you will have the evidence you need.

TELLIT01

Proceeds from the sale of property can be disregarded for a period IF you plan to use the money for the purchase of another property. You'd need to investigate further to see which benefits will allow that, and for how long, if that is your intent.