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Claiming UC and settlement assets

  • Cariade
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6 months 2 weeks ago #510334 by Cariade
Claiming UC and settlement assets was created by Cariade
Situation:

Marital home with mortgage, total equity £100k, Partner A moves out, partner B remains with children. No significant other assets.

If Partner A agrees to a divorce settlement that keeps all the equity in the house, for occupation by Partner B and children until they are 18..

Question:
would that make Partner A ineligible to apply for UC if they were unable to work?

Thanks

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  • WYSPECIAL
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6 months 2 weeks ago #510335 by WYSPECIAL
Replied by WYSPECIAL on topic Re:Claiming UC and settlement assets
Why are they unable to work?

Where will they live?

What happens to equity when children are 18?

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  • Cariade
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6 months 2 weeks ago #510336 by Cariade
Replied by Cariade on topic Re:Claiming UC and settlement assets
My question is simply about entitlement to benefit, however, as you ask, Partner A has a significant mental health issue and lives in rented accommodation.

The fmh would be sold when kids are 18 to release equity.

If Partner A is unable to claim UC due to equity in the FMH (which they cant actually
live in) then they will need some of the equity released so that they can afford to pay rent and live while unable to work.

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  • hadenoughnow
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6 months 2 weeks ago #510344 by hadenoughnow
Replied by hadenoughnow on topic Re:Claiming UC and settlement assets
I think this may be a question for a benefits specialist. Maybe the CAB?

Housing need is one of the main considerations for any settlement alongside income. The needs of both parties and the children have to be taken into account. Where possible both parties should be adequately housed.

Has Partner A been told they cannot claim UC? Are they entitled to health related benefits? Do they have a support worker who could help them?

Hadenoughnow

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