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Divorce/separation

Maintenance & tax credits/Universal Cedit

9 replies

tinkerbella55 · 06/10/2015 14:15

I am currently wrangling with Ex re divorce financial settlement & trying to decide if I can afford a mortgage. I can if the working & child tax credits I am entitled to stay roughly the same.
However, I am unsure, with the introduction of Universal Credit (UC) whether they will count my maintenance payments from my Ex when they are calculating the new UC. At the moment, in the old system, for tax credits outwith the UC system, they don't. My maintenance payments are probably larger than the average amount & I expect they would wipe out the £600 or so odd I can get from tax credits now, which would mean I definitely shouldn't take out a mortgage.

DWP website, job centre, turn2us & citizens advice can offer no decisive info on this.

Googling online people seem to be saying that Universal Credit only takes account of spousal maintenance not child maintenance, but I have not seen this from a formal/reliable source.

Does anyone know about this/where to look?

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redannie118 · 06/10/2015 14:33

Child maintenance is never included in any benefits calculations as it is a non taxable income. Therefore it makes no difference how much maintenance you recieve it will never be included as part of your income. Im a case worker for cmg 2012 scheme and I tell this to clients every day who are always pleasantly suprised :) hope that helps

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tinkerbella55 · 06/10/2015 20:35

Thanks v much redannie118. Do you whether spousal maintenance is factored into tax credits under universal credit? Btw, what's cmg 2012 scheme? Thanks for your help.

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Goodbetterbest · 06/10/2015 21:12

Spousal maintenance is counted as unearned income and does affect your universal credit.

However, your solicitor could word the court order in such a way that it is included in the child maintenance.

HTH.

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redannie118 · 07/10/2015 16:01

Cmg is child maintenance group the new organisation for the csa and good above there is right about spousal maintenance

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tinkerbella55 · 07/10/2015 19:11

Super, thank you both v much.

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FinglesMcStingles · 07/10/2015 19:12

Er, hate to be the one to point this out to you, OP, but tax credits are being slashed in April...

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tinkerbella55 · 07/10/2015 21:26

Hi, thanks, yes I know. I don't claim them yet so haven't been used to anything, so no change for me iyswim. Entitled2 or Turn2Us (can't remember which) have a calculator that says what u should get under new regime - hope it is roughly correct tho! Read about pressure from significant politicians at Tory Conf re conflict btwn supporting working fams & cutting tax credits - commentators saying govt may have to do s/thing to lessen impact of tax credit cuts. Hope so!

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FinglesMcStingles · 07/10/2015 23:59

Just so long as you weren't aiming to get a mortgage that you couldn't pay without tax credits or the UC equivalent. If you end up staying in rented bear in mind the calculators aren't yet reflecting the possibility of HB increasing as TCs decrease, but obviously that's no help if you do get a mortgage. I'm not sure whether the calculators take the changes to CTC into account either, as the budget announcement focused on WTC, so that's worth bearing in mind too. It would make life a lot easier if the govt. made their own, accurate calculator!