Entitlements for single-parent immediately after split

fiisch

Advice from the hive mind needed please for a close family member who's thinking of leaving their husband.

Current situation:
- Two children aged 1 & 3;
- Husband is a higher earner, such that the eldest only qualifies for 15 hrs free childcare;
- Currently in rented accommodation as a couple (she has left their home and moved in at least temporarily with parents in a different area);
- Savings of >£100k in a joint savings account, which was earmarked for a deposit for a house which they're currently in the process of buying.

Her maternity leave is ending in the next few weeks from a job which demands too much to manage as a single parent (overnight stays, unsocial hours etc.), but potential to find a more regular 9-5 part-time role internally within a very large organisation (has already contacted employer to this effect), but likely to be looking at a fairly junior role based on prior experience.

She has already been to Citizen's Advice but it's a lot to take in, and is hoping to work things out amicably.

What would you do as next steps in her situation, if indeed you decided to leave?  How would you go about re-building?  In particular, thinking:

1.  Any benefits / help with childcare she may be entitled to?  When do these kick-in given she's currently married, and - on paper at least - has access to a significant sum of money?  Eldest is paid up for this term, but nursery is 80-odd miles away so practically she wouldn't be able to attend there short-term.

2.  Should she contact solicitors for the house she's currently buying to formally withdraw herself from the process?  (Mortgage offer in place, contracts not yet signed).

3.  Where to start with finding somewhere to live?  Her earning potential means even assuming savings are split 50/50 that she will likely struggle to get a mortgage to buy a property, and could not afford rent long-term.  While she can stay at parents' house in short-term, practically it is too small for this to be a long-term arrangement.

4.  Would you withdraw her half of savings from joint account pending discussions to work things through, or leave as is?

Thanks in advance for any input.  Obviously a very delicate and difficult situation, especially with young children involved and timings with the house purchase and maternity leave.  There has been purportedly coercive/controlling behaviour (which I have seen first-hand), but she's keen to resolve amicably if at all possible without going down a legal route.  It's very hard to know where to start, especially as he has controlled their affairs throughout their marriage.

RAS

It is quite common for two married people who are living under the same roof to be assessed as separate if they have actually ended their relationship, for the purposes of benefits etc. Since neither is in a position to move on quickly.

It is also probably naive to hope to avoid going down the legal route if coercive controlling behaviour is an issue. Has the mother/partner reported the situation to the police?

And assess their joint finances and withdraw half that value from the joint savings, although she might well get more than 50% in a divorce given the age of the children.  

marcia_

 Best off posting here for benefits & childcare advice https://forums.moneysavingexpert.com/categories/benefits-tax-credits

TBagpuss

She will be assessed as having 50% of the savings so would be ineligable for means tested benefits. www.entitled.co.uk is a useful start for checking for any benefits entitlement . I believe that capital from the sale of a house or divorce settlement can be disregarded for a period where the intention is to useit to buy another property but I think you have to specifcally apply (And if you don't then buy within the deadline I think you have to use the savings to pay back any benefits ) 

She can withdraw money from the joint account so could do so to use to put down a deposit and pay 6 months rent up front, for instnace.

There's nothing to prevent her withdrawing the whole / more than half  of the money from the joint savings - in any divorce settlmenet it would be taken into account, and she would need to account for how it was spent (things such as deposit nad initial rent, and paying for day-to-day outgoings are likely to be reasonable, if she were to splash out of holidyuas and luxury brands then that spending might be 'added back in' and counted as part of her ultimate settlement. 

Assuming that she has the relvant bank details, she could trnasfer half (or other amount) of the savings to her account, the rest to her husband's then ask the bank to lose or freeze the joint account so neither of them canrun up an overdraft. 

Do they currently own a house or if the £100K the only capital asset?

IS she in a position wehre she can discuss things with her husband? obviously it's best if they can agree the next steps.

She should speak to a solicitor 

Also - looook into shared ownership properties as she may be abl to buy a 50% or other share with her share of capital and any mortgage she can raise.

She would be enbtitled to child support from her husband if the childnre are liing with her  - many lenders will take this into account for mortgage capacity if it is paid under a CMS assesment or written agreement