£100k + Universal Credit?

[NeverGoingToGiveYouUpButIMayLetYouDown]

I want to claim UC as I am no longer able to work due to a progressive illness.

Husband and I are divorcing. I owed him money, from a verbally-agreed loan between us both, so I transferred money to him three months ago. Plus, some of his savings were in my account, so I also transferred this back to him three months ago.

Will Universal Credit look unfavourably at all this - that I transferred £100k to him, and have very little (less than £16k) left over for myself? I have never claimed benefits before, so I am nervous this will be seen as deprivation of capital, despite occuring prior to me making a claim.

Would look very suspicious tbh

Funny you can’t claim UC if you have more than 16K in savings and you just happen to have slightly less than this!

It is deprivation of capital.

And they will be all over it.

Sorry.

Doing it prior to the claim is what makes it look really dodgy

Surely, if you're divorcing, that 100k is in the marital pot anyway?

They will treat it as if you still have it. It's convenient that the amount is reduced just enough to be under the capital threshold. Also, if you're divorcing, all the money is in the pot to be divided. Why is it just his money?

was the transfer of 100k required as part of your divorce settlement? I’m guessing not as sounds like divorce is not finalised. Therefore would be deprivation of capital and does sound especially dodgy that you just so happen to now have just under the £16k amount in order to claim.

All funds are joint if you are married - DWP will be all over this

You’re divorcing. Half that money is yours, subject to a judge of course.

If you had that much sitting in the bank then you and your husband must never a lot of savings and assets. Your husband doesn’t get to just walk away with that. You’ll get your share. You shouldn’t have transferred it all over to him.

How far into the divorce are you and what’s the situation with the financial split? What about your house?

You’re not getting any UC OP here, they’re not daft

I'd explain the situation to UC and see what they say. I can't imagine they're going to be OK with that. What was the loan for and was the transfer part of your divorce settlement?

it's absolutely crystal clear deprivation of assets

I simply don't believe you and I'm fairly sure they won't either

'verbally agreed loan' between spouses - right

pull the over one, it's got bells on and stop stealing from people who have much less than you clearly have

That is deprivation of assets and you know full well it is.

If you owe a debt then paying it is not deprivation:

https://www.legislation.gov.uk/uksi/2013/376/regulation/50

But was this a real debt?

Do you have a paper trail to show the £100k coming out of his account when he lent it to you and his savings being paid into your account? If not, then it sounds dodgy af.

If you genuinely cannot work due to a medical condition then you’ll probably be awarded more than 50% of the assets, so you’ll at least have a secure home and money for a while. You can claim UC when that runs out.

Nice effort to square the circle.

Lets be real...
you are married the savings are joint not his. The debt is joint not yours....

Its deprivation of capital you shouldn't get any UC

This !

If you have stopped work recently and paid NI contributions in the past 2-3 years then you can look at new style ESA and PIP instead of UC which is means tested.

Oh dear OP. You'll not get UC, but may be able to claim PIP as it's not means tested.

I don’t think ‘the money was just resting in my account’ line will work 😂😂

Thank you all for the felicitous responses.

The debt to him was because he was the full-time working partner, whilst I chose to rear the children and work part-time. I owe him 'his' life's savings he says - to question this is for me to parrot the usual mealy-mouthed platitudes of a divorced wife! I will not allow his rather regressive views, which dominated his oeuvre during the past two decades, be the reason I am suspected of foul play for UC.

There is absolutely a paper trail of him putting funds into my account to build it to £100k.

Admist the detrius-filled divorce, I now need to figure out next steps with UC whilst battling a serious illness that makes me magnificently dead pan on the best of days.

Right… but that money wasn’t his. Nor was it a loan. You raised the kids. He needed to financially support.

Why did you give it back? It was in your account and it wasn’t his. There was nothing he could do. You should have kept your money and used it to live on. And prevent him from spending it all or hiding it before the financial settlement. What about your house?

You’re going to get more than 50% in the divorce if you limited your work in order to raise kids and how can no longer work. So, where are you with the divorce? Are you doing it alone or do you have a solicitor? They should be telling you all this.

Please tell me you have a solicitor?!? Half that money is yours surely. Why would you transfer him all that???

To add further, the loan was for medical treatment at a BMI hospital. He wanted this back.