Universal Credit once I receive settlement from divorce?

[Emsy999]

Hello!

I'm in the process of getting divorced and we have the final financial hearing in April. I will be receiving the equity from the house we jointly own. At the moment I am privately renting and receiving Universal Credit but of course that will change once I receive the settlement as it will take me over the savings threshold.

I work part time, have debt (which I will pay off with the settlement) and so my mortgage capacity isn't huge. I am looking at the possibility of purchasing a shared ownership house as that's all I'll be able to afford but these places aren't frequently available and are released as and when available. I did read somewhere (but can't find it now) that once I receive the settlement I have six months grace to use it before my Universal Credit is withdrawn.

Does anyone know if this is correct? What have others done in this situation? I just don't want to eat up my deposit for a mortgage.

Many thanks

Why should you be receiving handouts from the state when you (will) have your own savings? If your mortgage capacity is small, why don't you up your hours from part time and try to (quickly) buy somewhere affordable for your budget? I don't think it should be the responsibility of the state and tax payers to fund your choice to work part time (if indeed it is a choice).

Did OP ask for opinions or facts?

I'm with you OP, though by no means an expert, but I think also that you have six months as the money is from proceeds of a house sale.

I think Shared Ownership is the best option here. Otherwise you'd have to run your savings down until under 16k before you start claiming again. Have you included CMS in your calculations? Can you raise your hours to adjust your mortgage affordability.

This is what you are looking for -

If a person has received an amount within the past 6 months which is to be used to purchase premises that the person intends to occupy as their home, that amount can be disregarded from the calculation of the claimants’ capital where it:

comes from the proceeds of the sale of premises formerly occupied as the person’s home

Yes you get 6 months

tea you should also work full time

Has the house already sold with funds waiting in Escrow?

I have an 18 month old so I would spend more in childcare then I would be able to earn myself if I went to full time.

I would happily buy a shared ownership property if one is suitable and available at the time but as I said they are released as and when, so the likelihood of one being ready when I've had the settlement would be very lucky.

The fact that a few helpful posters have replied and said that there is a rule that you have six months, I think shows that it's not as straightforward as you say it is.

If only it was that simple……

Yes you can have it for 6 months you can also get help with your rent with shared ownership from universal credit

My ex was supposed to buy me out and pay off the mortgage from money lent to him but is now playing dirty trying to get the estate agent valuations as low as he can. It's not worked so he's now saying that we will put it on the market. I'm not sure when that will happen but the final hearing isn't until April so it might be six months or so until the house is sold.

Sorry you are in this situation OP.

I guess the worst case scenario would be that if you can't find any suitable properties to take out a mortgage on, you would need to use your savings to replace your UC income until you are back under the threshold. I believe you would need to start a fresh claim as you won't have been paid for a while.

I sold the FMH prior to settlement, used the conveyancing dept of my solicitors and the house proceeds sat in their client account pending the settlement agreement. In the meantime, I moved in with family.

Are you confident that you will get all the proceeds? Has your ex already rehoused himself?

But you shouldn't be expected to be paying 100% of childcare cost, only 50% if this is enabling your ex to work full time too.