deprivation of capital and UC

Dutchiepomme

good morning, i have a complicated situation i need some advice on. me and my ex partner  recently sold our second home. this was his main residence whilst I lived in the other property with our children.
we could never get our names removed from the properties as the mortgage companies would not allow it.
Our personal arrangement was that any capital made from his property would be his and vice versa with me. i am in receipt of universal credit which I am now assuming will stop as it will be considered depreciation of capital if all the house capital is given to him. We were never married and we had no formal agreement made by a solicitor.

if UC do not accept these circumstances and the money is considered mine can I use the money to pay off some of my mortgage without it being deprivation of capital?
i currently am not in a position to make any mortgage payments and am on a mortgage holiday.
many thanks

huckster

You may wish to make the information clearer, as it is difficult to follow.

Presuming for both properties they were in joint names with mortgages in joint names.

marcia_

  I believe you can pay off debts including the mortgage without it being classed as deprivation of capital 

tacpot12

If you are legally entitled to the proceeds of the sale and you disclaim them, then that would be a deliberate deprivation of capital. You can use the money to pay off your mortgage. 

born_again

Dutchiepomme said:

good morning, i have a complicated situation i need some advice on. me and my ex partner  recently sold our second home. this was his main residence whilst I lived in the other property with our children.
we could never get our names removed from the properties as the mortgage companies would not allow it.
Our personal arrangement was that any capital made from his property would be his and vice versa with me. i am in receipt of universal credit which I am now assuming will stop as it will be considered depreciation of capital if all the house capital is given to him. We were never married and we had no formal agreement made by a solicitor.

if UC do not accept these circumstances and the money is considered mine can I use the money to pay off some of my mortgage without it being deprivation of capital?
i currently am not in a position to make any mortgage payments and am on a mortgage holiday.
many thanks

Not forgetting the EX, would have a claim on the house you are in now.

sammyjammy

Did you have a financial order when you split up that states this situation?

TELLIT01

I'm guessing that the property was in joint names.  If that is the case the OP would presumably only be entitled to 1/2 the profit from the sale.  In any event, the OP can use that money to pay off mortgage and other debts.

Dutchiepomme

thankyou, yes both houses were in joint names. We had no financial order.

HillStreetBlues

If you now have just the one property in joint names you need to make sure your ex has no future claims on it.

Voyager2002

As I understand the OP, you and your ex had a verbal agreement that you would give up your entitlement to your share of the proceeds from the sale of 'his' property (partly owned by you) in return for him giving up his entitlement to part of the value of the house where you now live. That is a perfectly reasonable agreement, and clearly not something that you cooked up in order to claim state benefits to which you would otherwise not be entitled. In other words, the laws on deprivation of capital ought not to apply to you.

There is nothing to stop you both putting your agreement down on paper now. Perhaps the simplest way to do so would be to write letters to each other stating what the agreement is, and, crucially, stating that the letter is simply confirming on paper what was agreed on an earlier date (and the letters should give the date of your agreement).

peteuk

For me the issue is note DoC but what every you do your in a hard place. 

Agree he walks away from your current property, in return for all the profit of the property sold.  You’re on a mortgage break so when thats up who’s paying the mortgage?

Agree to take some of the funds to pay your mortgage - does he then have a claim on your current house and equally whos paying the mortgage moving forward?