CMS and house equity 27 August 2019 at 11:14AM in MoneySaving dads 2 replies 4K views

James_Curtis

Just a little advice if possible.

Background is that I have now been separated 5 years, divorced 2 years and am the paying parent for my 3 children. The child support is around £900 pcm and my ex and I had an amicable split so that she could maintain the family home and I was able to purchase another house to maintain shared support.

Since then, I have met someone else and we plan to move in together with her 2 children - though I will not become legal custodian for them - but to do this I would like to sell my house and should have around £180,000 equity after fees etcetera.

Would anyone know if this would be classed by the CMS as an income and therefore increase my monthly child support payments?

Thanks in advance

TBagpuss

No, it would be capital, not income.
However, if you invest the money then any interest or other income you have from the investment would need to be declared.

Spikecast

You should find your CMS payments would actually drop as you’ll have to declare the two siblings you’ll be living with depending on age.