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Going our separate ways and need some advice financially if you can please?

(6 Posts)
kingshill Thu 29-Oct-15 12:56:13

I won't go into the ins and outs but marriage is over. I am looking at moving out and renting somewhere while DH remains in the family home. I am happy to do this. In fact I want to. We live in a village and I'd rather be in Town where I work and DS goes to school.

I have been looking at entitled to as I earn just over £14K a year in salary. I work 30 hours a week. It asks if I am a home owner which until the family home is sold I will be so I answered yes.

Secondly, I own another property. It was my brothers but came to me when he died. I tried to sell it but it wouldn't sell. Was right at the downturn of the market so we became landlords.

In my mind and this is still to be discussed, I would gift the let flat to DH. He quite likes having it and going forward would be able to afford to deal with any maintenance issues etc. In return I would receive a higher share of the equity coming out of the marital home when it is sold but to give us all breathing space I think once I move out and rent and DH is on his own we wouldn't sell for 6-12 months. There are ongoing maintenance issues in the marital home and they will need to be dealt with before the house goes on the market anyway. That and we live in quite a difficult area to sell in.

So, I am assuming this is where a separation agreement comes in? Everything is agreed formally between us both however, for tax credits help it asks if I receive any other income. Yes I do from the rents but if they are gifted to DH I wouldn't? Would I include any maintenance from DH here?

I know I am probably best to ask for advice from a Solicitor or the CAB but wondered if anyone had any advice?

Thanks

Seeyounearertime Thu 29-Oct-15 13:12:55

You need to talk to a solicitor I'm afraid.
Gifting a property and then claiming Housing Benefits or Tax credits etc may land you in trouble. It can be seen as you shifting assets so that you effectively have less so you can claim more. It's a way dodgy folk can keep claiming as much as they can and still hold assets.

You can still claim HB and Benefits whilst having a tenanted home though. They will ask how much its worth, what costs are, how much is owed in mortgage etc. They will then work out how much of that has to be accounted into benefit claims, they may decide that the income from that puts you over the benefit limit.

O would ask, if the property was left to you by your brother, does it have a mortgage or is the rental income almost all profit?
If that's the case then wouldn't you be better off earning your 14k and then having the income from the rent and not needing benefits?
Finally, if you have a child then your ExH should pay maintenance, again thats more income for you?

He yourself to a solicitor, you'll need one to gift an asset anyway.

kingshill Thu 29-Oct-15 13:26:10

Yep, this is what I thought after I had posted. Trying to be fair in the split but also keep my head above water. The property is worth about £110K but has a mortgage on it of £80. If it was sold now by me I'd end up in debt due to the capital gains tax that would be due on it.

If I kept it on I'd have a bit of income every month but it wouldn't be spent because I'd need to pay tax (obviously) and anything else would need to be kept for any maintenance problems going forward. Something like a new boiler would cripple me.

Thanks for coming back to me.

kingshill Thu 29-Oct-15 13:27:37

And yes, I'd rather not claim anything from the government.

changeoflife Thu 29-Oct-15 14:48:52

Child support is not considered income for tex credits but income from a 2nd property will be.

Talk with a solicitor. My ex & I had a separation agreement drawn up and it was all very simple & straightforward. Cost about £100. We agreed child maintenance, house equity split & savings/pension. Ours was pretty amicable so was easily sorted.

kingshill Thu 29-Oct-15 15:15:11

I really want ours to be amicable too. Need to find a solicitor for advice. Thank you.

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