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Benefit help, splitting up

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Hi I’d like some guidance, I’m at the point of splitting up with my partner and unsure how to proceed.

We currently have a property with a mortgage, if we sold it we’d probably have around 50k each. We currently don’t claim any benefits. If we did split would the 50k be seen as savings for the purposes of UC? Thanks for any advice.

Comments

  • HillStreetBlues
    HillStreetBlues Posts: 6,007 Forumite
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    edited 23 February at 3:25PM
    Who is living & who would live after septation in the property?
    Let's Be Careful Out There
  • NedS
    NedS Posts: 4,464 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    Yes, if you sold the property and had £50k each in savings, then you would not be entitled to claim means tested benefits.
    If however, you used your £50k as a deposit for a new mortgaged property, and your remaining assets were below £16k, then you would be entitled to claim means-tested benefits.
  • TELLIT01
    TELLIT01 Posts: 17,935 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper PPI Party Pooper
    NedS said:
    Yes, if you sold the property and had £50k each in savings, then you would not be entitled to claim means tested benefits.
    If however, you used your £50k as a deposit for a new mortgaged property, and your remaining assets were below £16k, then you would be entitled to claim means-tested benefits.

    Not necessarily true that the OP would lose access to means-tested benefit.  If they intend to use proceeds from the sale of the property to buy another property, the capital may be disregarded, initially for 6 months.
  • HillStreetBlues
    HillStreetBlues Posts: 6,007 Forumite
    1,000 Posts Third Anniversary Homepage Hero Photogenic
    TELLIT01 said:
      If they intend to use proceeds from the sale of the property to buy another property, the capital may be disregarded, initially for 6 months.
    Only if it's currently their home, OP's needs to answer further questions as could be a joint rental property.
    Let's Be Careful Out There
  • huckster
    huckster Posts: 5,264 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If main home has been sold and there is intention to buy another property using proceeds. For a UC Decision Maker to apply a disregard for 6 months for capital above £16k, they are going to want to see evidence of purchasing activities having commenced. E.g Estate Agent letter about property search, Solicitors conveyancing letters.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
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