Universal credit and savings

univ · 4 January 2018 at 7:38PM

Hi

I'd be grateful if anyone could help.

I have been in an unhappy marriage with someone who is emotionally abusing me. I have finally resolved to divorce him but it's complicated as he won't leave the house and wants me to leave even though it's my house, and says he will contest everything. We have 2 children.

When I looked last year I thought I could get tax credits but now my area is in universal credits area so I can't get credits any more if I divorce him- I would have to claim UC.

My close family member passed away in tragic circumstances 18 months ago and the money from his pension and death benefit has just lain in an account as was trying to also buy some sort of memorial for him before moving all money to my 2 children's accounts as I think that's what he would have wanted. There's about £15k in total.

I'm now worried that if I now move the money over to my children the DWP will look at it as deprivation of capital which I'm really upset about as that wouldn't have happened last year and that was always intended to go over to my kids eventually. Also I'm worried as they have savings accounts in their names but they are under my name as cover - will that be counted as mine?

I couldn't manage without help from the Govt and don't want to touch that savings money as that was never intended for me- it's for my kids? I'm panicking now as I feel I can't leave an abusive partner and I am so desperate to leave him- I dread going home at night from work and start shaking sometimes when he is being abusive.

How long would the DWP look at my account? If I don't start divorce proceedings for a couple months would it be ok to move the money over now? I am desperate as tax credits weren't affected by savings and I've now learnt UC is.

(Mind you have just looked up UC calculator and I'd only get £46 a week whereas I would have got £110 tax credits a week previously- bit of a drop- don't know how I'd survive now on this anyway as this doesn't even cover childcare)

Thanks

Ames · 4 January 2018 at 7:50PM

I don't want to worry you further, but your husband may be entitled to half of the money as it's a marital asset. Of course, you'd be entitled to a share of his assets. I think the benefit side is only part of your problem and seeing a solicitor is necessary.

sangie595 · 4 January 2018 at 8:39PM

The best memorial you can give someone, and the best investment you can make in your children's future, is to get out of an abusive relationship. Forget about keeping hold of money. That may or may not happen. Money won't buy your safety, or that if your children. Contact women's aid, or any advice agency, to find people who can help you.

[Deleted User] · 4 January 2018 at 9:38PM

You need legal advice OP if its your house and he wants you to move out?
If the money was left to the kids then thats fine, if it was left to you then its yours and you can't move it to the kids.

Alice_Holt · 4 January 2018 at 10:17PM

https://www.moneyadviceservice.org.uk/en/articles/protecting-your-home-ownership-rights-during-divorce-or-dissolution

http://www.familylawassociation.org/how-can-we-help/division-of-matrimonial-property.aspx

https://www.citizensadvice.org.uk/family/ending-a-relationship/if-you-were-living-together/what-happens-to-your-home-when-you-separate/

http://england.shelter.org.uk/__data/assets/pdf_file/0020/23393/ShelterGuide_RelationshipBreakdown.pdf

http://rightsofwomen.org.uk/get-information/family-law/marriage-your-rights-to-your-home/

£16k is the capital limit for claiming UC - https://www.entitledto.co.uk/help/Savings-and-other-capital-overview-Universal-Credit

Best wishes

TELLIT01 · 4 January 2018 at 11:18PM

univ wrote: »

My close family member passed away in tragic circumstances 18 months ago and the money from his pension and death benefit has just lain in an account as was trying to also buy some sort of memorial for him before moving all money to my 2 children's accounts as I think that's what he would have wanted. There's about £15k in total.

I'm now worried that if I now move the money over to my children the DWP will look at it as deprivation of capital which I'm really upset about as that wouldn't have happened last year and that was always intended to go over to my kids eventually. Also I'm worried as they have savings accounts in their names but they are under my name as cover - will that be counted as mine?

If the money was left to you, you can't simply give it to your children and then claim Income Related benefit. As you have indicated, it will be classes as Deprivation of Capital. Rightly or wrongly, what you believe the family member would have wanted doesn't come into it.
If you have access to the children's savings accounts they are likely to be included as your capital. Only money in Child Trust Funds are definitely not considered to be your asset as you don't have access to them.

univ · 5 January 2018 at 12:04AM

Thanks everyone I won't go into the reasons but I won't touch that money it is for my kids. He would have wanted that as he loved my kids more than anyone. I think as it was left for me just because I was next of kin he cant get hold of it? So it would be losing out on UC. Looks like I will have to move kids money as well from accounts to a trust.

Looks liked I'm f***d whatever I do. I will seek advice but feel trapped. I wish I had never got married now. He has no savings and no pension hardly so is after half of my house and my pension as well as being verbally abusive. I will tell my kids never to get married I am so depressed. If I had only left last year when tax credits were in I would have been ok. It sucks.x

WillowCat · 5 January 2018 at 12:30AM

All assets owned by both parties will be in the pot for sharing. Both your pensions, your house, the inheritance and any other assets either of you own.

How much is allocated to each party is dependent on many factors - but primarily each of your needs and even more importantly the needs of your children.

If you will be the primary carer for your children then the court will do their utmost to ensure you have a roof over their heads, but it may mean (depending on the values involved) that you need to forgo your inheritance in order to pay him a share of the house.

univ · 5 January 2018 at 1:11AM

Thanks I can't bear the thought of him getting my brother's money - he never loved him and only insulted him. Plus I think he pawned my wedding etc rings - they went missing and suddenly reappeared when I reported it to the police. My mum and dad's jewellery went missing 4 months ago and i thought were mislaid but now I think he did this as well but police won't look into pawn shops etc unless I make a statement naming him as a suspect. Have been round them myself and they won't tell me anything only police. He has already been aggressive about me reporting loss of rings to police- I'm frightened of making statement. I am in such a mess but if I try to get out I will be destitute he is vindictive and will be wanting everything.

Universal credit and savings

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