Capital ignored in benefits calculations

[betterno1]

Hi I have found this info on the entitled to website regarding separation and benefits entitlements;

In particular cases the value of property can be disregarded (ignored) on a long term basis. For example, the capital value of your former home can be disregarded from a means tested benefit calculation if:
• your former home is occupied by a relative who is incapacitated or over Pension Credit qualifying age
• your former home is occupied by your former partner who is a lone parent,
In the cases above the capital value is disregarded for as long as it is occupied by the relative or former partner (while they are a lone parent).
Has this applied to anyone? Are there any other rules around this?

I am looking to seperate and move out and rent as I can't afford the living costs on my own, also have 2 children, my husband (currently) will stay in family home and we will share the children.

What's the situation re the children at the moment. I would personally say don't leave the marital home.

Ime beware.
Beware.
Beware..
I moved out. Intention of sharing the dc.
He told them I left because I didn't want them anymore. Took 4 years to sort proper cao and many more to rebuild the relationships with my dc..
Yes I claimed the relevant benefits wrt him keeping the home as you asked...
Was the least of the troubles.

Yes the year or two post separation partners - often men - can get nasty wrt children. If you are primary caregiver Def do not leave marital home. Not many good reasons to leave marital home.

Is be seriously cautious about leaving the children and moving out. Take them with you instead of you have to leave.

DS1 stepmum did that and it turned very nasty for the poor woman. Her husband claimed he was the primary care giver as proved by the fact that she left the children. Got pretty nasty and Ended up going to court where she was awarded every other weekend and 1 night in the week.

Just to clarify it's not my intention to leave with the children but leave my home to rent elsewhere and children will share their time between two homes, I can't afford to stay in the marital home independently.

I left marital home as ex wouldn’t move. Also thinking I would receive equity quickly and be able to buy, but I’m still waiting. I do receive universal credit as they disregard capital asset if you have no access to it. I think they’re supposed to allow 6 months grace period for equity transfer or house sale. It has allowed me to get out and move on, but is a little perilous wondering when your eligibility for uc will run out. Kids live between us both (older).

Yes @somebodyoutthere I am in a similar situation to you, kids are teenagers.

I suppose once you go it's a waiting game as nothing is ever quick!!

The only way I can afford to rent is by claiming UC, but I need to know for sure if they will disregard the capital if children and ex are still living in mortgaged house. I know they disregard short term while house is being sold but if house isn't being sold and ex is living there capital is tied up and no access to it 🤷‍♀️

In order for husband to be deemed a single parent then he would have to have responsibility for at least one child. That would mean that child wouldn't be on your benefit claim.
If you have both children equally then you could.probably game the system a bit by having ex responsible for one child and you responsible for the other. You'd lose the £200 odd a month for the second child though.
I'd suggest taking your query to eg. Citizens Advice because there may be other particulars to your claim that would make one or other course of action preferable.

I was about to say same as the above poster.

Unless the parent that remains in the house is a resident parent of at least one child then this won't qualify.

So either the asset is sold and split enabling you both to buy a smaller place each.

Or you claim the child benefit for one of your children each making you eligible for UC.

Are things amicable. Do you believe other parent will agree to this 50/50 and stick with it?

What the last two posters said is very important.

To get it disregarded he’d have to have one of the children financially.

You’d get less on your UC and only be entitled for rent for 2bed.

Can you get a job and stay in house. You’d get higher work allowance and get to keep 45% of earnings. How much is mortgage

I've been in contact with citizens advice this afternoon and they've pretty much said the same. I do think it could be amicable and that's is what we would have to do in order to get round it.

@MNCar I already work as a nurse and earn around £24k i not quite full time out can extend my hours to make it full time, but still couldn't afford to run the house mortgage is £1000 a month and with no help from UC because I have a mortgage that would be half my wage gone!

If you were the one to stay in the home withthe children you would get UC. You can have a mortgage and getUC.

But you might earn too much to get UC if you worked full time, no?

I wouldn't get the housing part of UC if I stayed in my own home and paid my own mortgage which would mean I couldn't afford to stay here, on the calculations it's about £800 pm difference!

But isn't it £800 difference towards rent only? Long term you'd be better paying towards your own asset if you could.

Could you get a lodger under the tax free scheme?

Is remortgaging an option?

@betterno1

I wouldn't get the housing part of UC if I stayed in my own home and paid my own mortgage which would mean I couldn't afford to stay here, on the calculations it's about £800 pm difference!

Oh right. I didn't realise there was a housing part to it too. Good luck