Property disregard following a relationship breakdown

funkygal

Hi, I just wanted to check if I've got this correct.

Currently living with STBX (soon to be ex) in a jointly mortgaged property. Equity is more than 16k once divided. Applied for UC as a single person with children in Oct 2025 with no housing element. Moving into rental Jan 2026. Will do 50/50 with the kids. Found the following from the Shelter website. 

Property is disregarded for six months when the claimant:[21]

has ceased to occupy their home following a relationship breakdown

has acquired it but not moved in yet

is taking steps to obtain possession of it

is taking reasonable steps to dispose of it

is carrying out essential repairs or alterations to make it fit for occupation

1. Can I used the relationship breakdown disregard from the date when I move out into the rental property (Jan 2026)?

2. If so, can I then use the "taking reasonable steps to dispose of it" for another 6 months? My STBX wants to buy me out, does this count as taking reasonable steps to dispose of it and how could I prove that? We initially planned to sell but they claim they have the funds to buy me out but I'm not too sure.

3. Would the funds from the buy out be disregarded for 6 months too? What if the funds are from the divorce settlement e.g STBX remortgaging and loan from parent, would this count? Or does it only count if it's from an actual sale of the house. I intend to use the funds for deposit on a house. 

I'm basically trying to figure out the max time I can be on UC while renting. 

huckster

When you move into rental property in January 2026, you declare equity in second property and ask for disregard, based on current attempts to remove yourself from ownership, following breakdown of relationship.

Presumably you can evidence written correspondence between yourself and ex partner and also communications with mortgage company. The latter is important, as you have joint outstanding liability with mortgage company and they may refuse to remove your liability unless you have gone through correct legal process including completing any paperwork that they require.

Once the above legal process has been gone through, if your ex partner was in a position to pay you a share of equity, once you received it, you would declare to UC and you would apply for disregard based on using this to purchase new property showing any evidence available.

NedS

You mention kids - how old are they and whom will they be living with after the separation?

Your former home can be disregarded indefinitely if it continues to be occupied by your former partner and they are a lone parent (i.e, if they continue to live there alone [no new partner moves in with them] and at least one child lives there with them). The 6 month disregard you refer to above applies where no children are living at the property (i.e the formal partner is not a lone parent).

Answering your questions:

1. Your property is disregarded as long as you are living in it as your primary residence, so yes, any disregard can only start from the date you move out of the property. As long as you continue to live there, it's disregarded in full.

2. Yes, your partner arranging to buy your share sounds like reasonable steps to me.

3. Good question. The law says if the funds are from the sale of a house formerly occupied as your home and you intend to use those funds to purchase another property to be occupied as your home. I think that the STBX could make a payment to you to purchase your share of the property and that equity split can then be acknowledged in the financial settlement as part of the divorce (IANAL). If you can show receipt of funds to 50% of the equity value of the house and a change of ownership on the land registry, I think it is quite clear that those funds are the proceeds of sale of your share of the house and can be disregarded for 6 months whilst you are actively seeking to purchase another home.

funkygal

NedS said:

You mention kids - how old are they and whom will they be living with after the separation?

Your former home can be disregarded indefinitely if it continues to be occupied by your former partner and they are a lone parent (i.e, if they continue to live there alone [no new partner moves in with them] and at least one child lives there with them). The 6 month disregard you refer to above applies where no children are living at the property (i.e the formal partner is not a lone parent).

Answering your questions:

1. Your property is disregarded as long as you are living in it as your primary residence, so yes, any disregard can only start from the date you move out of the property. As long as you continue to live there, it's disregarded in full.

2. Yes, your partner arranging to buy your share sounds like reasonable steps to me.

3. Good question. The law says if the funds are from the sale of a house formerly occupied as your home and you intend to use those funds to purchase another property to be occupied as your home. I think that the STBX could make a payment to you to purchase your share of the property and that equity split can then be acknowledged in the financial settlement as part of the divorce (IANAL). If you can show receipt of funds to 50% of the equity value of the house and a change of ownership on the land registry, I think it is quite clear that those funds are the proceeds of sale of your share of the house and can be disregarded for 6 months whilst you are actively seeking to purchase another home.

Kids are 2 and 4, will be living with both parents on a 50/50 arrangement. I've already looked into the lone parent disregard. I don't think it would apply as it's a 50/50 arrangement and only one parent can be classed as the 'main carer'. I claim the child benefit so it would probably be me.

NedS

funkygal said:

NedS said:

You mention kids - how old are they and whom will they be living with after the separation?

Your former home can be disregarded indefinitely if it continues to be occupied by your former partner and they are a lone parent (i.e, if they continue to live there alone [no new partner moves in with them] and at least one child lives there with them). The 6 month disregard you refer to above applies where no children are living at the property (i.e the formal partner is not a lone parent).

Answering your questions:

1. Your property is disregarded as long as you are living in it as your primary residence, so yes, any disregard can only start from the date you move out of the property. As long as you continue to live there, it's disregarded in full.

2. Yes, your partner arranging to buy your share sounds like reasonable steps to me.

3. Good question. The law says if the funds are from the sale of a house formerly occupied as your home and you intend to use those funds to purchase another property to be occupied as your home. I think that the STBX could make a payment to you to purchase your share of the property and that equity split can then be acknowledged in the financial settlement as part of the divorce (IANAL). If you can show receipt of funds to 50% of the equity value of the house and a change of ownership on the land registry, I think it is quite clear that those funds are the proceeds of sale of your share of the house and can be disregarded for 6 months whilst you are actively seeking to purchase another home.

Kids are 2 and 4, will be living with both parents on a 50/50 arrangement. I've already looked into the lone parent disregard. I don't think it would apply as it's a 50/50 arrangement and only one parent can be classed as the 'main carer'. I claim the child benefit so it would probably be me.

As you have two children, and intend a 50/50 arrangement, from a benefit perspective it would make sense if each adult claims for one child (child benefit and any UC claim).* Therefore the STBX is a lone parent with one child living with them full time and the house can be disregarded indefinitely (or until circumstances change) until you can receive your share. This massively simplifies things for both of you.

* You cannot split benefits for a given child (i.e, receive half of the child benefit each for any one given child), so the fact you have two children makes life simpler in that you can claim for one child each effecting that 50/50 arrangement.

TELLIT01

It may not be as simple as one parent claiming CB for one child.  If the children live together and move together between parents, it's almost impossible for there actually to be a 50/50 split in care.  I would certainly get advice from Citizens Advice before attempting that.

funkygal

NedS said:

funkygal said:

NedS said:

You mention kids - how old are they and whom will they be living with after the separation?

Your former home can be disregarded indefinitely if it continues to be occupied by your former partner and they are a lone parent (i.e, if they continue to live there alone [no new partner moves in with them] and at least one child lives there with them). The 6 month disregard you refer to above applies where no children are living at the property (i.e the formal partner is not a lone parent).

Answering your questions:

1. Your property is disregarded as long as you are living in it as your primary residence, so yes, any disregard can only start from the date you move out of the property. As long as you continue to live there, it's disregarded in full.

2. Yes, your partner arranging to buy your share sounds like reasonable steps to me.

3. Good question. The law says if the funds are from the sale of a house formerly occupied as your home and you intend to use those funds to purchase another property to be occupied as your home. I think that the STBX could make a payment to you to purchase your share of the property and that equity split can then be acknowledged in the financial settlement as part of the divorce (IANAL). If you can show receipt of funds to 50% of the equity value of the house and a change of ownership on the land registry, I think it is quite clear that those funds are the proceeds of sale of your share of the house and can be disregarded for 6 months whilst you are actively seeking to purchase another home.

Kids are 2 and 4, will be living with both parents on a 50/50 arrangement. I've already looked into the lone parent disregard. I don't think it would apply as it's a 50/50 arrangement and only one parent can be classed as the 'main carer'. I claim the child benefit so it would probably be me.

As you have two children, and intend a 50/50 arrangement, from a benefit perspective it would make sense if each adult claims for one child (child benefit and any UC claim).* Therefore the STBX is a lone parent with one child living with them full time and the house can be disregarded indefinitely (or until circumstances change) until you can receive your share. This massively simplifies things for both of you.

* You cannot split benefits for a given child (i.e, receive half of the child benefit each for any one given child), so the fact you have two children makes life simpler in that you can claim for one child each effecting that 50/50 arrangement.

Interesting, are you sure this would work? The STBX would not need to claim UC as they are on a decent wage compared to me. 

Also, would I then lose half of the child element on UC?

NedS

funkygal said:

NedS said:

funkygal said:

NedS said:

You mention kids - how old are they and whom will they be living with after the separation?

Your former home can be disregarded indefinitely if it continues to be occupied by your former partner and they are a lone parent (i.e, if they continue to live there alone [no new partner moves in with them] and at least one child lives there with them). The 6 month disregard you refer to above applies where no children are living at the property (i.e the formal partner is not a lone parent).

Answering your questions:

1. Your property is disregarded as long as you are living in it as your primary residence, so yes, any disregard can only start from the date you move out of the property. As long as you continue to live there, it's disregarded in full.

2. Yes, your partner arranging to buy your share sounds like reasonable steps to me.

3. Good question. The law says if the funds are from the sale of a house formerly occupied as your home and you intend to use those funds to purchase another property to be occupied as your home. I think that the STBX could make a payment to you to purchase your share of the property and that equity split can then be acknowledged in the financial settlement as part of the divorce (IANAL). If you can show receipt of funds to 50% of the equity value of the house and a change of ownership on the land registry, I think it is quite clear that those funds are the proceeds of sale of your share of the house and can be disregarded for 6 months whilst you are actively seeking to purchase another home.

Kids are 2 and 4, will be living with both parents on a 50/50 arrangement. I've already looked into the lone parent disregard. I don't think it would apply as it's a 50/50 arrangement and only one parent can be classed as the 'main carer'. I claim the child benefit so it would probably be me.

As you have two children, and intend a 50/50 arrangement, from a benefit perspective it would make sense if each adult claims for one child (child benefit and any UC claim).* Therefore the STBX is a lone parent with one child living with them full time and the house can be disregarded indefinitely (or until circumstances change) until you can receive your share. This massively simplifies things for both of you.

* You cannot split benefits for a given child (i.e, receive half of the child benefit each for any one given child), so the fact you have two children makes life simpler in that you can claim for one child each effecting that 50/50 arrangement.

Interesting, are you sure this would work? The STBX would not need to claim UC as they are on a decent wage compared to me. 

Also, would I then lose half of the child element on UC?

Yes, you can't have it both ways. Either you claim the CB and UC child element, but can't then claim an indefinite disregard because STBX is not a lone parent (as you are claiming for the children), or the children live with STBX and they claim the CB/UC, but you can claim the capital disregard.

Ultimately, you should be guided by where the children are living. Where is their primary residence - will it be with you or STBX?

funkygal

NedS said:

funkygal said:

NedS said:

funkygal said:

NedS said:

You mention kids - how old are they and whom will they be living with after the separation?

Your former home can be disregarded indefinitely if it continues to be occupied by your former partner and they are a lone parent (i.e, if they continue to live there alone [no new partner moves in with them] and at least one child lives there with them). The 6 month disregard you refer to above applies where no children are living at the property (i.e the formal partner is not a lone parent).

Answering your questions:

1. Your property is disregarded as long as you are living in it as your primary residence, so yes, any disregard can only start from the date you move out of the property. As long as you continue to live there, it's disregarded in full.

2. Yes, your partner arranging to buy your share sounds like reasonable steps to me.

3. Good question. The law says if the funds are from the sale of a house formerly occupied as your home and you intend to use those funds to purchase another property to be occupied as your home. I think that the STBX could make a payment to you to purchase your share of the property and that equity split can then be acknowledged in the financial settlement as part of the divorce (IANAL). If you can show receipt of funds to 50% of the equity value of the house and a change of ownership on the land registry, I think it is quite clear that those funds are the proceeds of sale of your share of the house and can be disregarded for 6 months whilst you are actively seeking to purchase another home.

Kids are 2 and 4, will be living with both parents on a 50/50 arrangement. I've already looked into the lone parent disregard. I don't think it would apply as it's a 50/50 arrangement and only one parent can be classed as the 'main carer'. I claim the child benefit so it would probably be me.

As you have two children, and intend a 50/50 arrangement, from a benefit perspective it would make sense if each adult claims for one child (child benefit and any UC claim).* Therefore the STBX is a lone parent with one child living with them full time and the house can be disregarded indefinitely (or until circumstances change) until you can receive your share. This massively simplifies things for both of you.

* You cannot split benefits for a given child (i.e, receive half of the child benefit each for any one given child), so the fact you have two children makes life simpler in that you can claim for one child each effecting that 50/50 arrangement.

Interesting, are you sure this would work? The STBX would not need to claim UC as they are on a decent wage compared to me. 

Also, would I then lose half of the child element on UC?

Yes, you can't have it both ways. Either you claim the CB and UC child element, but can't then claim an indefinite disregard because STBX is not a lone parent (as you are claiming for the children), or the children live with STBX and they claim the CB/UC, but you can claim the capital disregard.

Ultimately, you should be guided by where the children are living. Where is their primary residence - will it be with you or STBX?

The children will be living at both properties on a 50/50 shared care arrangement. 

I think I will stick to the other disregard reasons as I can't afford to lose half the child benefit and child element of UC.