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Benefits/child tax credits when separating

(25 Posts)
SuddenRealisation Fri 20-May-16 10:10:56

We have been living as separated for a while. We aren't rich by any means.
We are trying to work out a way to manage to love separately.
We have 3 DC.
I wanted to know, can child tax credits be split evenly, and if not, could one of us receive them and then share 50% with the other?
How would it work?
We have a mortgage on our house. One of us might stay here and one of us might get a 3 bed rental place.
Anyone know what I'd be entitled to as a lone parent who looks after the kids 50% of the time?
We would be sharing them equally and probably spending a lot of tile with them together still..

SuddenRealisation Fri 20-May-16 10:11:24


SuddenRealisation Fri 20-May-16 10:53:53


SilverGiraffe7 Fri 20-May-16 11:34:52

As far as I'm aware, whoever had the child benefit in their name can claim the tax credits. So either way (one of you claims for one and the other for two, or one claims for all) it's up to you whether you average out the claim between you. Or let the one renting do it as renting will be more expensive than living in a house with a mortgage.
Or, only it you're truly happy doing it, have an account into which the tax credits, child benefit and a contribution from each of you goes in, and the rent and mortgage goes out so you're sharing the 'for the children' money equally.

SuddenRealisation Fri 20-May-16 12:45:55

Thanks, I think rental will be about the same price as our mortgage judging on the places I've been looking at.
What about things like income support, housing benefit, council tax benefit etc?
Anyone know about these?
I work 16hrs part time and run a small business for about 10 hrs a week.
Ex h earns a full time wage for about 30hrs a week

BaronessEllaSaturday Fri 20-May-16 12:51:33

You wouldn't be entitled to income support due to the hours you work, You wouldn't be entitled to housing benefit due to owning a home. You should get council tax benefit. The issue of sharing money the way you are talking about is that you would then still be classed as a family and not a lone parent. If you are classed as the resident parent ie you are the one who gets the child benefit then you would be entitled to claim WTC and CTC.

If you decide to properly separate then you do need to completely separate and that includes finances.

isaterror Fri 20-May-16 22:25:41

Google entitled to and go through the questionnaire on there it's pretty accurate and will tell you what you're entitled to

Fourormore Sat 21-May-16 01:19:17

You don't need to claim CB to claim TC. I claim CB for my children, my ex claims the TC for them.
If the arrangement is 50/50 then no maintenance is due under CMS rules (although you can come to your own agreement about this).

TC and CB cannot be split as such (they won't send part payment to you and part to your ex) but you can split it between you yourselves. You don't have to claim for all children - one of you could claim for one child and the other for two children.

SuddenRealisation Sat 21-May-16 10:50:09

Who qualifies for income support? If we sold the house would I get housing benefit? Or if I transferred the house in to his name only?

SuddenRealisation Sat 21-May-16 10:58:51

I have done the entitled to thing but as I don't have all the accurate figures for everything, I'm not sure it's right. So just thought I'd ask people in similar situations..

SuddenRealisation Sun 22-May-16 22:36:35

Anyone know what happens with housing benefit of we transfer our house in to ex h's name?

SuddenRealisation Mon 23-May-16 12:15:11

Just a bump to find out about the housing benefit

AndNowItsSeven Mon 23-May-16 12:18:58

Nobody would get income support and I doubt you would get housing benefit as you would be deliberately depriving yourself of an asset - your home.

SuddenRealisation Mon 23-May-16 15:25:35

Is it an asset if there's hardly any equity though? If we sold it the equity would cover fees and that's about it

SuddenRealisation Mon 23-May-16 15:28:34

Not really bothered about an asset. Just want us all to be settled and happy and to be able to pay my bills

Marilynsbigsister Tue 24-May-16 07:46:19

I have been in social welfare system (don't want to be too specific) for 25 yrs. Although no longer officially advise as have moved to less customer friendly role but can tell you the best way to work this to all your advantages.
Its an appalling system when it comes to separated parents especially if you get on fairly well and genuinely want to co parent. The benefit system does not acknowledge,that whilst the 'non resident parent' (even if it's 50/50) may not have the children as much as the rp, the dcs nonetheless need a bedroom/s when staying. It is not appropriate to expect them to share a bedroom with their parent but often, a one bedroom flat is all that can afford without the children being officially recognised by having CB in payment. So unfair ! So..

You have three children. If you decide to keep your home (it you can afford to, you really should as its about the best financial investment going), then the one who is going to rent should claim child benefit for two children. If you have children of different sexes then it's important to 'choose' one of each for the child benefit claims. This will maximise the number of bedrooms housing benefit will cover. (Providing the kids are over 11) separate bedrooms are expected by housing benefit for children of different sexes over 11). Thus, 2 dcs - dd8 and ds 11 = 3 beds Dd3 and 5 = 2 Beds. DS12 &15 = 2 Beds.

There is no help for mortgage payments until you have been out of work for 12 weeks, then it's interest only, by which point they will probably repossess, so not worth the bother. The parent who keeps the house should claim CB for 1 child and top up income with Tax credits for which (as pp has already said) you do not need CB . You need to write to tax credits and explain that you are 50/50 parents and do not have CB for all (as other parent has this) but would like to claim. This way he gets rent and CB for two and you get tax credits and CB for one.

One correction. You will not be prosecuted or sanctioned for selling your house if you can no longer afford to pay the mortgage due to family separation. This is not 'deprivation' this is called responsible forward planning and being aware that your house could be repossessed. You will need to show the proceeds of sale. (Divided between self and dp if in joint names) and mortgage costs/your sole income as proof that mortgage was no longer sustainable.

SuddenRealisation Tue 24-May-16 12:57:11

Thanks for the info. The Dc are all the same sex and are all younger than 11..
Does this change anything?
Also, I was imagining I might be the one to move out but I don't know for sure yet.
Do you know if I moved out whether I could claim housing benefit?

TimetohittheroadJack Fri 27-May-16 09:10:43

It's not possible to just sign your house over to your ex. He needs to apply for and afford the house on his salary. My mortgage company wouldn't take any benefits into account. If you are only working part time it's unlikely the mortgage company would give you a mortgage based on your own salary.

if your ex could afford the mortgage you would become his tenant- and at the mercy of him evicting you and the children if he decided too

SuddenRealisation Thu 09-Jun-16 10:24:18

I don't think he could apply for the mortgage alone.. And I definitely can't afford it.
I don't want the kids to lose their home.
What's the solution here?
I just want to be able to live separately and afford to do so. sad

SuddenRealisation Fri 08-Jul-16 13:35:37

Bumping for more info. A friend said that if I move out and leave him with the family home, I would be classed as separated and therefore be able to claim housing benefit.
Anyone know if this is right?

datingbarb Fri 08-Jul-16 13:40:30

Income support is for non working parent or lone parent with a child under 5 so you wouldn't get this

To be honest other than tax credits based on your income you will struggle to get anything.

As your a homeowner you will not get housing benefit and if you sold you house you still wouldn't get it if you were left with any money,

KittyLaRoux Fri 08-Jul-16 13:48:05

Visit your local housing options and speak to an advisor. Explain your relationship has broken down and you need to move out would you be entitled to housing benefit?

Your housing options may deem you to have made yourself intentially homeless mean you will be given low banding for housing ( bidding) and may not be entitled to housing benefit. The advisor will be able to give you the best answer.

I would suggest you stay in the home, put it up for sale and contact the mortgage company to ask about a mortgage holiday or much lower monthly payments. Also explain that you have seperated.

SuddenRealisation Wed 10-Aug-16 23:10:11

It's all very confusing.. I don't understand how a friend of mine owns a home but as she has left, can claim benefits

Babyroobs Wed 17-Aug-16 21:22:47

I think if you own half of the maritial home, they will allow you to claim housing benefit to rent somewhere for a period of time until the maritial home is sold or the ex partner buys you out. If you then end up with a sum of money from the equity from the maritial home you are no longer entitled to claim Housing benefit ( if you have over 16K in savings).
If your friend owns a share of the mariatial home , she would still be able to claim tax credits as this is based purely on income.

SuddenRealisation Tue 30-Aug-16 20:42:42

Thanks for explaining that. Our house has maybe 6k profit in it which would mostly go on fees if sold..
But I'm not sure we want to sell it.
Argh, it's all such a mess

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