Separation - Benefits while having equity in house

PersianCatLady

NeilCr wrote: »

I think it does make sense in these particular circumstances

Do you mean that it would make sense for her to be allowed to claim the HB or are you agreeing with me??

PersianCatLady

Housing_Benefit_Officer wrote: »

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/365783/hbgm-bp1-assessment-of-capital.pdf

P1.200

Capital assets disregarded for up to 26 weeks

iv a dwelling formerly occupied by the claimant following estrangement or divorce from a
former partner. The disregard period begins on the date of leaving the home. A disregard
under this provision applies for 26 weeks, unless the home is occupied by a former partner
who is a lone parent when the disregard applies for as long as the home is so occupied
HB(SPC) Sch 6 Para 6; CTB(SPC) Sch 4 Para 6
v any premises not just a former home the claimant is taking reasonable steps to sell, the
period may be extended beyond 26 weeks if the claimant is taking reasonable steps to
dispose of the property
HB(SPC) Sch 6 Para 7; CTB(SPC) Sch 4 Para 7

That states that the disregard usually only applies for longer than 26 weeks when the house is occupied by a former partner who is a lone parent.


I thought in this case the OP was hoping to leave the home and take the children with her which would mean that the home would be occupied by a single man.

NeilCr

PersianCatLady wrote: »

Do you mean that it would make sense for her to be allowed to claim the HB or are you agreeing with me??

It makes sense for her to be allowed HB for that period.

Housing_Benefit_Officer

PersianCatLady wrote: »

That states that the disregard usually only applies for longer than 26 weeks when the house is occupied by a former partner who is a lone parent.


I thought in this case the OP was hoping to leave the home and take the children with her which would mean that the home would be occupied by a single man.

No. If a couple separate and the claimant is single and the former home is occupied by their former partner who is a lone parent then the disregard will apply for as long as the home is occupied by the lone parent. If the claimant has taken the children out of the former home and claims Housing Benefit then the disregard on the capital value of the home only lasts 26 weeks.

NYM

What happens if after those 26 weeks the property is still not on the market and the occupier refuses to sell?

nannytone_2

NYM wrote: »

What happens if after those 26 weeks the property is still not on the market and the occupier refuses to sell?

the period can be extended, and they may advise that a price drop is needed.
if a house is competitively priced then it will sell

NYM

I meant if the person that remains in the house refuses to sell especially if they can afford to meet any costs associated with the property.

The cost of Court action to force a sale can be prohibitive.

nannytone_2

the property would be sorted out in a divorce.
the OP needs to start divorce proceedings.

not sure how it would work if they weren't married.
but the council would not permanently disregard a property just because the ex is being awkward

Housing_Benefit_Officer

nannytone wrote: »

the property would be sorted out in a divorce.
the OP needs to start divorce proceedings.

not sure how it would work if they weren't married.
but the council would not permanently disregard a property just because the ex is being awkward

If after 26 weeks after vacating the property, the property wasn't for sale and there wasn't a dispute over ownership and no legal proceedings had started to divorce and get the property sold then we would treat the property as capital and the claimant would be disqualified from means tested benefits. The 26 week disregard is to give the claimant time to sort out their financial affairs following the separation.

If after 26 weeks the claimant came to us and said "My ex refuses to sell." We would reasonably ask what have you done in the past 6 months to either force the sale, gain occupation or start legal proceeding to separate and split the assets. If the answer was "Nothing" then benefits would cease.

If the claimant came to us with a big bundle of solicitors letters and court documents showing the claimant was taking reasonable steps to dispose of the property then we would extend the disregard and review every month or so.

NYM

Thanks HBO