Financially dependent on DP who has had an affair - Equity is stopping benefits

[ilovehugs]

Please help!

I've posted on some other threads. My 12 year relationship with DP has broken down very badly and I need to look into what my options are. I am looking for work (not claiming job seekers). Two children aged 7 and 5. 5 year old has just started school and also claims low rate DLA. I have no income apart from my meager work from home stuff. I get what DP gives me and child benefit. I have some credit card debts and an overdraft. In an ideal world I want to stay in our home for the kids - but I cant make the mortgage payments and I cant sell to an investor and claim housing benefit as that is illegal. My only money is wrapped up in the house and I've been told that I can claim...

tax credit - but this may stop if the house is sold as any capital is seen as an income.

child benefit

maintenance (DP earns around 40k)

job seekers

As for housing benefit - I can't claim housing benefit until the house is sold and the equity has gone - I can't give it to my kids in a trust fund or similar. There are apparently lots of rules which stop people deliberately making themselves poor to claim benefits. I can keep 6k in savings, pay off 4k in debts, spend a couple of grand on a rental deposit and a few monthly payments. This would leave me about 8k - If I spent that on kitting a rented house out with furniture and household items, buying a car (car is in DPS's name) etc - would I be able to 'get away' with that and go and claim housing benefit?

Ideally I would like to earn enough to re-mortgage but the time it would take me to get into that position whilst living like this is too long.

Any advice would be greatly, greatly appreciated. I'm finding this all very scary.

My first advice would be to talk to a solicitor. Although you are not married, thefinancial help you can claim from your former partner will be significant. Maintenance is not counted as income for tax credit purposes

The proceeds from the sale of your house would also not count as income for tax credit purposes. If you end up with £14,000 only the annual interest earned on that sum would be classed as income. If interest is around 3% that only adds £420/year to your income. Working Tax Credit applies if you work 16 hours/week or more. Child Tax Credit is not dependent on hours worked.

Buying a car, furniture & clearing debts with proceeds from a house sale are all reasonable things to do. You may find that, when you tot up the total ... income, tax credits, DLA & maintenance... you can afford to rent either privately or from a Housing Association without relying upon Housing Benefit and you can have some cash in the bank besides.

The Turn2Us website has a very good Benefits Calculator that may help you work out your full income. You may be better off than you currently think. Good luck

Thanks allot for that - it's really helpful x