Divorce Settlement and Univeresal Credit

Elliiotsnan

If when my family home is sold as part of a divorce settlement, can I use the cash lump sum from the sale as a deposit on a house, obtain a mortgage  and still claim Universal Credit?

calcotti

Elliiotsnan said:

If when my family home is sold as part of a divorce settlement, can I use the cash lump sum from the sale as a deposit on a house, obtain a mortgage  and still claim Universal Credit?

Yes. Proceeds of the sale of a former home can be disregarded for six months from the date you receive them (or longer if DWP consider it reasonable so to do) if they are to be used for the purchase pf a new property you will live in.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1042621/admh2.pdf

Capital disregarded for up to 6 months

H2110 In the disregards described below that specify a period of 6 months, that period may be extended where it is reasonable in the circumstances of the case.

H2119 Where a person has received an amount within the past 6 months which is to be used to purchase premises that the person intend to occupy as their home, that amount can be disregarded from the calculation of that person’s capital where it

1. is attributable to the proceeds of the sale of premises formerly occupied as their home or ...

NedS

Elliiotsnan said:

If when my family home is sold as part of a divorce settlement, can I use the cash lump sum from the sale as a deposit on a house, obtain a mortgage  and still claim Universal Credit?

Yes, you can.

In addition to @calcotti's answer above, I would just highlight that in order to get a mortgage you will presumably need an income (job), and those earnings will affect the amount of UC you receive. I highlight this as if you do not have a job and are thus unable to obtain a mortgage, DWP may determine that you have no realistic prospect of using the lump sum to purchase a house (depending on the value of the lump sum and properties in your area) and decide not to disregard the capital. Lots of assumptions there, please don't take offense if they do not apply to you - better forewarned!