Seperation, marital home sold, equity, kids and UC

MS_1978

Hi,

My wife and I seperated back in July, she moved out in September to a 1 bed flat with our 2 kids. I have the kids 3 nights a week and she has them 4 times a week. We are selling the marital home and any equity is being split 50/50. I am on a good salary so don't need to claim any benefits as such and she has been claiming child benefit for edledt child since born and only on youngest since the seperation in July. 

I am using my share of the equity to purchase a new property (£56k) and pay a mortgage on. My wife is in a rental which is quite a high rent (£850pcm) + bills and her part time (12 - 16hr a week) job will not cover this but she will have the other £56k. Part of the seperation was money was to be put away for the 2 kids and we are both wondering whether we can put the savings away (£20k per child) and the rest for her to currently live on (£16k) and she can claim UC.

Is this viable, doable, fair etc?

MS_1978

I've now realised it's £6k not £16k !!

poppy12345

MS_1978 said:

Hi,

My wife and I seperated back in July, she moved out in September to a 1 bed flat with our 2 kids. I have the kids 3 nights a week and she has them 4 times a week. We are selling the marital home and any equity is being split 50/50. I am on a good salary so don't need to claim any benefits as such and she has been claiming child benefit for edledt child since born and only on youngest since the seperation in July. 

I am using my share of the equity to purchase a new property (£56k) and pay a mortgage on. My wife is in a rental which is quite a high rent (£850pcm) + bills and her part time (12 - 16hr a week) job will not cover this but she will have the other £56k. Part of the seperation was money was to be put away for the 2 kids and we are both wondering whether we can put the savings away (£20k per child) and the rest for her to currently live on (£16k) and she can claim UC.

Is this viable, doable, fair etc?

Yes, she can do this but entitlement to UC will end on the last day of her assessment period because she will still be classed as having the money, as it will be classed as deprivation of capital. You can't just give money away like this and continue to claim means tested benefits.

If she's claiming council tax reduction she needs to make sure she reports the changes to her local Authority as well.

Maximum amount of savings is £16,000. For every £250 or part there of over £6,000 there's a £4.35 per month deduction in UC.

Paying off debt is not classed as deprivation of capital.

TELLIT01

poppy12345 said:

 You can just give money away like this and continue to claim means tested benefits.

I think poppy12345 meant "can't just give....."  I've done that typo myself in the past.

poppy12345

TELLIT01 said:

poppy12345 said:

 You can just give money away like this and continue to claim means tested benefits.

I think poppy12345 meant "can't just give....."  I've done that typo myself in the past.

Thank you, now corrected.

nannytone_2

Why would money to put away fot the kids only come ftom her half of the equity ?

sammyjammy

nannytone_2 said:

Why would money to put away fot the kids only come ftom her half of the equity ?

To enable her to claim benefits it would seem!

OhWow

MS_1978 said:

We are selling the marital home and any equity is being split 50/50. I am on a good salary so don't need to claim any benefits as such and she has been claiming child benefit for edledt child since born and only on youngest since the seperation in July. 

.....
Is this viable, doable, fair etc?

Not fair at all. It should not be split 50/50, her share should be greater because you are the higher earner. I assume her part time work was to fit around looking after your children?

You will have the higher pension too: will you be splitting the value of that 50/50 with her?

If you want to be fair, tell her to take legal advice on what she should have. Using your pension value too, she could find she keeps all the equity in the house and then some.

OhWow

sammyjammy said:

nannytone_2 said:

Why would money to put away fot the kids only come ftom her half of the equity ?

To enable her to claim benefits it would seem!

And to leave his wife with virtually nothing?

themoomins

Pretty sure children's savings are counted when it comes to benefits.

This all seems very shady!

If above board the wife should get more than 50% of the house equity as a lower earner with main responsibility for kids. She should to able to afford suitable housing, rather than a 1 bed flat for three of them.

I think both of you need to have solicitors involved to make sure all is fair and above board.

Your STB ex wife should purchase a house with 70% of the house equity and then could still claim UC without hiding money in kid's accounts.

poppy12345

themoomins said:

Pretty sure children's savings are counted when it comes to benefits.

If the savings are in the childrens names no they are not. However, the mother "giving away" her money to her children and then continuing to claim means tested benefits is as advised, deprivation of capital.