Separation, house sale & UC

Logan112

My husband and I are separating. After a horrific year we’re on UC and he gets contribution based ESA. He is nearly 56 and is struggling with his mental health (diagnosed depression, not far from suicidal). He isn’t close to getting back to work and there’s a chance he may not ever work again. With our family situation this year I’ve had to give up work too and have been judged as having limited capability for work.
Although I hope to get back to work that’s not going to happen overnight.

We are fortunate enough to have some equity in our house but it’s not enough for either of us to buy another property and we’re not in a place to get a mortgage.

My husband is saying he doesn’t want his share of the equity, that it’s for the children (& it could help me rent somewhere for me and the children). Is he able to do that? Would he be able to claim benefits or would it count as disposal of assets even though he’s doing it to provide a home for his children and will not be able to financially contribute towards their upkeep in any other way?

I am aware this may not be the right or fair option and am exploring other avenues. I don’t want to leave him with nothing but this is what he is insisting he wants to do.

Thank you

xylophone

this is what he is insisting he wants to do.

Is he capable of making rational decisions at the moment?

Is his condition so serious that he should be in hospital?

I would imagine that the benefits people would expect him to keep his share of the equity - where is he to live if the family home is sold?

huckster

No he cannot decide not to take his legal share of any equity. Any UC claim would have to consider that he had the proceeds from the sale, when considering the capital. If this is more than £16000, the UC claim would be closed. Between £6000 and £15999, there would be a deduction applied. Both could ask for the capital from sale of home to be disregarded for 6 months, if you are looking to buy another property to live in.

What about buying shared ownership housing, where you don't need to have so much of a deposit, as you are only buying part of the property ? Is this an option that has been looked into ?

Agree with the comment that mental health can cause people to become irrational and any decision made in this situation can be subject to legal challenge, when the fog of depression clears. So as you probably realise, even if you husband wanted to do as suggested, it would be unwise to allow this.

Logan112

Thank you for your concern xylophone but if he was supposed to be in hospital he would be.
I am trying to ascertain whether he is capable of making such decisions but that’s in the hands of medics and potentially legal folk. I have no intention of ripping him off and will be taking many things into consideration as well as seeking advice.
What I wanted to know was if according to UC rules he would be allowed to do what he wishes. It is not easy to get straight answers from UC staff - especially as at this point it is hypothetical. We wish to gather information to help inform our decision making. UC seem to wish you to make uninformed decisions and live with whatever the consequences are; they don’t want to comment on “hypothetical” situations.

Logan112

Thank you huckster. The problem with shared ownership is that I would still require a mortgage and at the moment I’m not in a position to get one.

calcotti

Logan112 wrote: »

. What I wanted to know was if according to UC rules he would be allowed to do what he wishes..

As huckster says, if he gives away capital that is legally his then for UC purposes he is likely to be treated as still having it. The guidance is here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/843713/admh1.pdf
See inparticular paragraphs H1825 and following.

Logan112

Thank you calcotti, I’ll have a look at that. It doesn’t surprise me that this would be the case, just trying to be sure where we stand.

es5595

How old are the children? If they are under 18 and his 'share' of the equity went to providing a home for his children, it would be a different matter, surely?

poppy12345

es5595 wrote: »

How old are the children? If they are under 18 and his 'share' of the equity went to providing a home for his children, it would be a different matter, surely?

It doesn't matter how old the children are. It's only disregarded for 26 weeks if the OP is buying another house, otherwise no.