Mesher order and universal credit

Meatymonster

Currently I live with my wife and 2 kids and are getting divorced. We are both on the mortgage. One idea is she moves out and rents as she would be entilted to quite a lot of universal credit which means she could afford a place locally. It would be with a mesher order ie in a set number of years house is sold and she gets half. 

Another idea is we do "nesting" ie we both stay living in this home but each stays a few nights a week elsewhere. My question is if we removed her from the mortgage and deeds, with a mesher order so she gets half of evetyhing in a set number of years, would she then be entitled to full universal credit? Ie she would basically be renting from me as a private landlord, rather than some other random. I've checked the UC regulations but its not clear on mesher orders. The house she's living in would not be capital as she wouldn't own it but would they say well she used to therefore she's not entitled? Also she will get it further down the line, so in that sense its like an inheritance. It doesn't look like guaranteed future inheritance is taken into account in assessing UC? 

Ideally I need a definitive answer to this question before proceeding with the divroce financial order. I don't want to proceed with the asusmption she would be entitled, then we do everything and find out she's not. Chicken and egg. Is there anyway to get a definitive yes or from DWP before changing the deeds? 

Rubyroobs

In all those scenarios she will likely not be entitled. 
You cannot just take someone off the house deed mortgage so that they can claim benefits. Uc would expect the house to be sold and the proceeds divided. 
They will also not pay rent element for her to rent off you  especially not when she owns half the house.
And if she moves out to rent then she still owns half a house that she is not living in and if the equity from that in that property is more than 16k she will not qualify for UC.
You seem to just want benefits to pay to house your kids whilst you benefit from being a landlord  !! Unbelievable.

Meatymonster

Rubyroobs said:

And if she moves out to rent then she still owns half a house that she is not living in and if the equity from that in that property is more than 16k she will not qualify for UC.

Schedule 10 of the UC regulations
Capital to be disregarded

5.  Premises that a person has ceased to occupy as their home following an estrangement from their former partner where—

(a)the person has ceased to occupy the premises within the past 6 months; or

(b)the person's former partner is a lone parent and occupies the premises as their home. 

With respect I'm not looking for advice from people who don't know what they're talking about

https://forums.moneysavingexpert.com/discussion/6607521/mesher-order-and-universal-credit/p1?new=1 

Rubyroobs

Meatymonster said:

Rubyroobs said:

And if she moves out to rent then she still owns half a house that she is not living in and if the equity from that in that property is more than 16k she will not qualify for UC.

Schedule 10 of the UC regulations
Capital to be disregarded

5.  Premises that a person has ceased to occupy as their home following an estrangement from their former partner where—

(a)the person has ceased to occupy the premises within the past 6 months; or

(b)the person's former partner is a lone parent and occupies the premises as their home. 

With respect I'm not looking for advice from people who don't know what they're talking about

https://forums.moneysavingexpert.com/discussion/6607521/mesher-order-and-universal-credit/p1?new=1 

Fine for her to occupy the premises with the children but she cannot claim UC rent element for renting from you. 

HopeAndDriftWood

They'll disregard the capital; yes, which is what that Regulation states... but they won't pay her the rent element to pay to you.

marcia_

Meatymonster said:

Rubyroobs said:

And if she moves out to rent then she still owns half a house that she is not living in and if the equity from that in that property is more than 16k she will not qualify for UC.

Schedule 10 of the UC regulations
Capital to be disregarded

5.  Premises that a person has ceased to occupy as their home following an estrangement from their former partner where—

(a)the person has ceased to occupy the premises within the past 6 months; or

(b)the person's former partner is a lone parent and occupies the premises as their home. 

With respect I'm not looking for advice from people who don't know what they're talking about

https://forums.moneysavingexpert.com/discussion/6607521/mesher-order-and-universal-credit/p1?new=1 

 Disregarding capital for a period has no baring on her ability to get uc to pay for rent on said property. She will not get rent paid. 

Rubyroobs

If she leaves the property and the house is on the market then the capital/ equity in her half of the house can be disregarded for up to six month ( sometimes longer ) thus allowing her to claim UC. Once she receives proceeds form the house sale , if they exceed 16k then UC would stop until it falls below 16k again.

Meatymonster

HopeAndDriftWood said:

They'll disregard the capital; yes, which is what that Regulation states... but they won't pay her the rent element to pay to you.

Is there something in the regs to say you can't get UC if you rent from a former partner?

HillStreetBlues

Meatymonster said:

HopeAndDriftWood said:

They'll disregard the capital; yes, which is what that Regulation states... but they won't pay her the rent element to pay to you.

Is there something in the regs to say you can't get UC if you rent from a former partner?

Yes https://www.legislation.gov.uk/ukdsi/2013/9780111531938/schedule/2 Sch 2, para 10(2)
In the way you describe it would be classed as a Contrived Tenancy.

Meatymonster

HillStreetBlues said:

Meatymonster said:

HopeAndDriftWood said:

They'll disregard the capital; yes, which is what that Regulation states... but they won't pay her the rent element to pay to you.

Is there something in the regs to say you can't get UC if you rent from a former partner?

Yes https://www.legislation.gov.uk/ukdsi/2013/9780111531938/schedule/2 Sch 2, para 10(2)
In the way you describe it would be classed as a Contrived Tenancy.

Thanks. If I'm reading it right it would be the earlier paragraph 5 and the fact I'm the father of the kids, rather than former partner

swingaloo

According to your other thread you also own another Buy to Let property so her claiming is going to be very difficult.