Universal credit messy divorce 2 homes

ButterNoodles1

Hi I’m in desperate need of help for the short term please don’t judge. Going through a messy divorce for a year.  ex H has given up job and claiming he has no money. He has failed to pay maintenance pending suit. He pays nothing. I have 5 kids (3 dependent 2 university age). We have 2 homes one was our family home and he moved out to the other which was the house I grew up in but we jointly own both with no mortgage. I’ve been stay at home mum for 20 years but now have PT job that fits around kids. Back in December I applied for Universal Credit but was turned down due to owning 2 houses. Other than my wage and child benefit we have nothing else coming in. I’m in so much debt and can’t pay bills. Relying on zero waste for food. Something just doesn’t seem right with my application I’ve had a mandatory reconsideration with no joy. I had a court hearing recently and the judge even said something is not right. I think it’s something I have put on my application form? I remember it asked when I moved out of the property (the 2nd one which was rented out) but it was our family home up until 2019 so I put 2019. I feel because I’ve put that it was a case of computer says no? I’m sure there are some rules around property being disregarded for the short term during divorce?? . I have the children 100% of the time and it just doesn’t seem right that we are left without any support whatsoever during this time. Can anyone please shed some light on this? If it wasn’t for friends and family we would literally be starving. They don’t get free school meals because we don’t get UC. I have to pay for everything. Literally no money just so desperate. 

Thank you in advance 

peteuk

Sadly as you own two houses, the second with no mortgage you have more than £16K in capital, therefore you are not eligible for UC.

Im not expert but if you get yourself taken off the second home, and your ex does the same for the house you live in, you’ll own only one which would help.  if you get him to buy you out then the money from the sale will be what you are expected to live on until your capital is less than £16K

ButterNoodles1

Thank you for that peteuk… yes that’s the difficult part he’s dragging it out whilst hiding assets no doubt. It’s just for the short term until settlement. Final hearing won’t be for at least another 4 months. There must be many others out there with same issue ..shame there’s no support. 

HillStreetBlues

Just want to check you had and lost at a Tribunal

kaMelo

If I remember correctly the second home, of which you are a joint owner, would only be disregarded as capital if your children, or at least one, lived with him as a lone parent. As he has none living with him (or at least you don't say he has any living with him) there is nothing stopping the house being sold (theoretically at least). If it were in the process of being sold then it could be disregarded as capital for six months. 

HillStreetBlues

kaMelo said:

If I remember correctly the second home, of which you are a joint owner, would only be disregarded as capital if your children, or at least one, lived with him as a lone parent. As he has none living with him (or at least you don't say he has any living with him) there is nothing stopping the house being sold (theoretically at least). If it were in the process of being sold then it could be disregarded as capital for six months. 

That would be my angle of attack.
I would be auguring that there currently no capital in the house the ex lives in.
He isn't going to agree to sell it as he would then be homeless, and OP can't sell her half.
Once divorce is sorted and agreement of assets then hopefully it can be sorted.
Clearly the OP isn't trying to play the system as if she owned the 100% on the house she is living in instead of 50% and 50% of another, there would be no problem. 

kaMelo

HillStreetBlues said:

kaMelo said:

If I remember correctly the second home, of which you are a joint owner, would only be disregarded as capital if your children, or at least one, lived with him as a lone parent. As he has none living with him (or at least you don't say he has any living with him) there is nothing stopping the house being sold (theoretically at least). If it were in the process of being sold then it could be disregarded as capital for six months. 

That would be my angle of attack.
I would be auguring that there currently no capital in the house the ex lives in.
He isn't going to agree to sell it as he would then be homeless, and OP can't sell her half.
Once divorce is sorted and agreement of assets then hopefully it can be sorted.
Clearly the OP isn't trying to play the system as if she owned the 100% on the house she is living in instead of 50% and 50% of another, there would be no problem. 

It's not an unreasonable position to take, it seems fair and reasonable but I've just been looking up the rules, to refresh my own mind as much as anything else, and came across this paper;
https://data.parliament.uk/DepositedPapers/Files/DEP2022-0452/022-Capital_disregards_V19.0.pdf

Premises occupied by former partner

Premises that are occupied by a former partner as their

home are disregarded indefinitely if it is their only home

and:

• the person and their former partner are not

estranged but are living apart by force of

circumstances, for example where the person is

in long-term care

• the person’s former partner is a lone parent and

occupies the premises as their home

If the OP had left the family home and moved into the second home then it would be a different story, the capital in the original family home would be disregarded for six months.  As they have stayed in the family home there are only two reasons why the second home would be disregarded indefinitely.  He's not living there by force of circumstance so unless he's a lone parent it cannot be disregarded. If you can find something else in the regulations to suggest otherwise I'm more than happy to be corrected but it appears there is no room for discretion such as, my ex won't sell so I can't realise the asset, and the original decision and MR are correct.

Spoonie_Turtle

I think the only potential point of any argument would be this, from the above link:


"Premises a person is trying to dispose of 
If a person is trying to dispose of premises, they can be disregarded from the calculation of capital where they are taking reasonable steps to dispose of the premises and those steps started within the last 6 months.

It may be reasonable to disregard the premises for a longer period where, for example - the person has done all they can to sell the premises and the asking price is no more than the premises are worth."


I have no idea how it would play out in reality though.  The argument would presumably be centred around OP wanting to sell and ex blocking it.  But what steps OP would need to be taking for that to potentially be considered, I have no idea.

HillStreetBlues

How I see it it's how much capital is in the house the ex lives in.
The way to fine out is to get a estate agent to value the house and knock of 10% (I think that's the normal figure) for cost of selling. If house is worth £100k then OP half would be £45k.
The issue is ex doesn't want to sell.  If OP asked an estate agent to value the house but told them the it was only her 50% for sale and the ex would be staying put, the estate agent I expect tell the OP the house is currently unsellable, if that's the case then atm there is no capital in the house.
I have never seen a house advertised in such circumstances. 

pmlindyloo

This seems extremely unfair.

You said you did a mandatory consideration.  Did you appeal this?  You mentioned a court case - was this to do with the refusal of UC?

This is complicated and I suggest you need some specialist help.  Have you got a Citizens Advice near you?  If you do a bit of googling and you have a choice then try and find a benefits specialist.

I know some forum members work for CAB so they should be able to give you more contact information about securing specialist benefits help.

( I am not mentioning the debts, so as not to confuse, you but CAB can also help with these - holding letters to creditors for example)

NedS

Spoonie_Turtle said:

I think the only potential point of any argument would be this, from the above link:


"Premises a person is trying to dispose of 
If a person is trying to dispose of premises, they can be disregarded from the calculation of capital where they are taking reasonable steps to dispose of the premises and those steps started within the last 6 months.

Have they taken reasonable steps though? Have they received a valuation from an estate agent?

I understand the partner may be dragging their heels, but they will still need to be able to provide sufficient evidence that they are trying to dispose of it. Do they have solicitor letters urging the partner to resolve sale of the property? I doubt just sitting back accusing the partner of dragging their heels would satisfy the condition. In their shoes, I would be taking every measure possible to push for a resolution ASAP.