Child's DLA counted as income in Divorce

Divorcedwith3

I am getting divorced and have two children who are disabled and receive DLA and this also increases my Universal Credit Award.  Their dad who doesn't see them by his choice has said that the children's DLA is 'income' for me (it goes into my bank so it will show up on Form E and i am to be honest and declare i get it).

He has a very good income and a big pension pot and lives with girlfriend who pays half his household bills.   I had to give up my job to look after the kids and receive Universal Credit and Carers Allowance.  I cant see me being able to go back to work anytime soon and even if i did the childcare costs (even with UC help) are still massive. I'm obviously as well not paying into my pension anymore.  

Case is going to go to court (due to other reasons) and im wondering in reality does a judge look at the amount received in children's DLA and take it into account.  Given its for my child (although in my name) and i'm an appointee and it could be taken away at anytime surely it cant be considered 'income' for me.
  He is arguing that marital assets and any potential spousal support are reduced (DLA and increased UC make it look like i have more money). 

marcia_

 The DLA is your childs not yours, its simply paid into your account as the parent for you to spend on their extra needs. 

 No judge will take it as income 

Albermarle

I would agree with the above. However I would speak to your solicitor about it, just to make sure they know about it, so they can easily refute any spurious claims from the other side.
Presumably you/your solicitor, will be claiming significant amounts of money for supporting you and your children going forward.
I imagine a judge will not look favourably on anybody with two disabled children trying to shirk their financial responsibilities.

KxMx

As in lots of divorce cases, what one party thinks should happen often has no basis in reality. 

tightauldgit

If it's money that goes into your account and you have control of how it is spent then I can't see how it's not income for you - it certainly impacts on your financial needs. So you should declare it. On the other hand whether it has any significant impact on the outcome of the hearing is a different matter. 

marcia_

tightauldgit said:

If it's money that goes into your account and you have control of how it is spent then I can't see how it's not income for you - it certainly impacts on your financial needs. So you should declare it. On the other hand whether it has any significant impact on the outcome of the hearing is a different matter. 

 Because thats not what the Law says. Its her childs money and the mother has to spend it on their needs. As soon as the child is 16 it can legally be paid into an account in their name. 

tightauldgit

marcia_ said:

tightauldgit said:

If it's money that goes into your account and you have control of how it is spent then I can't see how it's not income for you - it certainly impacts on your financial needs. So you should declare it. On the other hand whether it has any significant impact on the outcome of the hearing is a different matter. 

 Because thats not what the Law says. Its her childs money and the mother has to spend it on their needs. As soon as the child is 16 it can legally be paid into an account in their name. 

And if that happens then when the child is 16 it wouldn't be income for the mother, but until then it would certainly appear to be and should be listed on the Form E. 

Of course the amount should be considered in context of the other outgoings which should also be listed on the Form E. If the child was to receive the money directly then the outgoings should be reduced by an equal amount to account for that.

In my experience it's preferable to disclose things fully and let the court see that you are being honest in your disclosures than not disclose them and it be raised as an issue later.   

Also bear in mind that child maintenance will be determined based on NRP's income and child custody arrangements and will ignore any income/benefits of the resident parent. 

sammyjammy

KxMx said:

As in lots of divorce cases, what one party thinks should happen often has no basis in reality. 

This ^^

He sounds like such a charmer, hope things work out for you and your children.  Its men like this that make divorce so difficult for other men (I'm generalising!)

Divorcedwith3

I am of course going to disclose it but I do think it’s unreasonable to base a divorce settlement on this. 

This money is not guaranteed and is subject to review every 2 yrs.  

I am a full time carer (I get £302 a month for this which if you base on the calculation that you need to care for a person for min 35 hrs a week then for 35 hrs of work it’s £2 an hr). I am not classifying looking after my child as something I should be paid for but I’m doing this I am prevented from seeking other work which also means I’m not getting benefit of employer pension scheme. 

Meanwhile he is off earning lots of money,  building up a pension and not caring for his children. 

marcia_

tightauldgit said:

marcia_ said:

tightauldgit said:

If it's money that goes into your account and you have control of how it is spent then I can't see how it's not income for you - it certainly impacts on your financial needs. So you should declare it. On the other hand whether it has any significant impact on the outcome of the hearing is a different matter. 

 Because thats not what the Law says. Its her childs money and the mother has to spend it on their needs. As soon as the child is 16 it can legally be paid into an account in their name. 

And if that happens then when the child is 16 it wouldn't be income for the mother, but until then it would certainly appear to be and should be listed on the Form E. 

Of course the amount should be considered in context of the other outgoings which should also be listed on the Form E. If the child was to receive the money directly then the outgoings should be reduced by an equal amount to account for that.

In my experience it's preferable to disclose things fully and let the court see that you are being honest in your disclosures than not disclose them and it be raised as an issue later.   

Also bear in mind that child maintenance will be determined based on NRP's income and child custody arrangements and will ignore any income/benefits of the resident parent. 

 Nobody said not to declare it, just that a Court wouldn't count it as income belonging to the mother. 

Albermarle

Divorcedwith3 said:

I am of course going to disclose it but I do think it’s unreasonable to base a divorce settlement on this. 

This money is not guaranteed and is subject to review every 2 yrs.  

I am a full time carer (I get £302 a month for this which if you base on the calculation that you need to care for a person for min 35 hrs a week then for 35 hrs of work it’s £2 an hr). I am not classifying looking after my child as something I should be paid for but I’m doing this I am prevented from seeking other work which also means I’m not getting benefit of employer pension scheme. 

Meanwhile he is off earning lots of money,  building up a pension and not caring for his children. 

As you said this, Case is going to go to court (due to other reasons) then presume you have a solicitor?
Unless you are pretty money savvy yourself, it is best to have help in these money/divorce settlements.
There is also another MSE forum where such issues are discussed.

Marriage, relationships & families — MoneySavingExpert Forum