Shared Ownership, Universal Credit and Divorce

Mumof2boys

Hi All,
I am going through a divorce, which will be finalised in the next couple of months.
My STBXH moved out of the family home of 11 years back in July 2023.
The family home is a shared ownership property that we own 50% of. I say "we". However, at the time of getting the property in 2012, I was not able to be on the mortgage due to my credit history. So, the mortgage part and tenancy are solely in his name.
When we got the house the deposit of £20,000 was from my dad as part of my inheritance, but because I wasn't actually allowed to be on the deeds to the house, it was made to look like the money was from his dad (this was between STBXH and the mortgage advisor at the time). 

I am now receiving UC, working 25 hours a week and bringing the children up both under 16. I live in the house with them, pay the mortgage and the bills as normal. STBXH pays the rent side and council tax as normal.

STBXH is selling the house. I agreed as i know im still in no position to access a Mortgage. He started the process in August 2023, the house has had a valuation and now everything has slowed right down.

My concerns are
- Am I making myself and children intentionally homeless by not registering my rights to the home and agreeing to the sale?
- I'll be due half on the sale of the house. Which because is a 50% ownership would be 25% which is looking likely to be £25K. Am I able to request my inheritance out of the sale of the property? If it wasn't for my inheritance there would of been no house, but it was made to look like it was from his dad? Surely this is wrong? And illegal?
- Can I put some of the money into a trust fund for my children without it affecting my UC?
- I have a lot of debt to pay off so would also be looking to clear all of this with the money too.
- Housing? Can I use 16K to pay for a year's rent whilst I sort myself out? Would that affect UC

This money from the sale of the house will be enough to do these things and give myself and boys a fresh start. But it's not going to last for ever. 
I have already informed UC that the house is being sold and they have just asked me to keep them updated which I do.

Is there anyone who would be able to help me in my concerns?

Thank you in advance ☺️ 

Albus_Scope

Heya @Mumof2boys and welcome to the community.  

I'm afraid I can't answer your questions, but I'm going to pop your post into a relevant category, so more people in the know will be able to see and hopefully offer you some top support. I hope that's ok?

I've found this link from Citizens Advice, which hopefully may answer some of your questions in the mean time? 

poppy123456

I don't think you're making yourself intentionally homeless because if you don't have the funds to buy your ex out then you have no other option other than what you're doing now.

I can't advise about your inheritance, though i'm very shocked when you said it was made to look like it was from his dad. When my daughter and son in law got their first mortgage a couple of years ago i gifted them a small amount and i had to write a letter to the mortgage company to say it was a gift. I also had to give a bank statement to prove where the funds came from.

Once the money from the sale of the house goes into your bank then you will need to report the changes to UC. You're allowed to pay off debt when claiming UC without it affecting your benefits. When claiming UC what counts is your circumstances on the last day of each assessment period. If at that time you have more than £16,000 then your UC will end.

You can put money into a trust for your children but you'll still be treated as having that money and it will still be counted as savings. Giving money away like this will be treated as deprivation of capital.

I'm not 100% sure about using £16,000 to pay a years rent and whether that will affect your UC but it may do. I'd advise you to get some expert advice from an agency near you for this.