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17/01/2014 at 11:55
My brother and his girlfriend of 14 years have recently split up. They have a 14 year old (not my brothers child biologically but classed as one in his eyes) and a 10 year old.
Its very amicable but going forward I want to be able to help him with financial help in terms of providing him with the information. I know there are loads of people who have experience of it and give good advice.
They both earn similar amounts, have no equity in the house they live in, and have a few loans they owe.
Where do I start searching for information?
17/01/2014 at 11:57
Ah thats sad 1stbaby but good that things are amicable.
Is your brother still living with them or has he moved out? do they have a joint mortgage or rent agreement?
17/01/2014 at 12:25
Sorry to hear that 1stbaby. I've no real advice on legalities of things really.
17/01/2014 at 12:50
1st baby, my brother and SIL have recently split they have a 9 year old son and rented. Not sure exactly what you need but hope the following helps:-
If when it's permanent then your SIL (I know she's a girlfriend but easier to type for rest of this), needs to remove him from rental agreement. That way it proves he's gone
Once she's done that if her income is low (not sure on exact amount but it's about £30k with 2 kids) she can put in for sole Child Tax Credit and working tax credit (if she works I think the rates are lower but and child care etc.. raises the amount)
Depending on income your SIL can also get help with paying the rent and council tax. She may only be entitled to help towards a 2 bedroom house if the kids are the same sex, 3 bedroomsif they're different sexes.
If your SIL isn't working she can put in for Job Seekers allowance
If your brothers income is low (about £16k and he works 30 hours) he can put in for WTC in his own right, I assume he could also get housing support if his income was really low i.e on benefits.
He will owe 15% of his net (after tax etc..) income to your SIL for child maintenance. I don't know the rules but know something has changed with CSA so if they use it, both of them will have to pay a monthly fee for the honour, so suggest they sort it out themselves. The 15% is based on him not having the child overnight it alters if for example he has the child 3 times a week, if it's a shared agreement I think (not sure) he owes nothing as he has joint responsibility, but they'd need to agree who has the right to get the child benefit/child tax credit etc..
A top tip from my brothers break up is sort out access early on. My brother went away for 4 days and my SIL kicked off because she 'might' want him to have their son overnight. By sorting out the days everyone including the kids knows whats happening.
Hope that helps, and I wish them the best in keeping it amicable x
17/01/2014 at 13:03
Thank you, will take the time to read through this later BLL! But its exactly what I was lookign for.
I think its permanent, it only happened Tuesday, so its been a bit of a bumbling along week for them. They are chatting today about the future.
They have the mortgage together.
17/01/2014 at 13:28
Mortgage's make it harder. If one wants/can buy the other out and get a mortgage in their own name it' easier (I bought out my ex hubby and it made it simple). However this is often not possible.
The options then get messy. Easiest is to sell the house, and both go off to do their own thing. Other options include your SIL keeping the house, with both names on the mortgage with an agreement that your brother x% of the profit once it's sold when his child reaches 18 (he needs to get this legally agreed I think it's known as a MIRA arrangement for divorces). The issue with this is your brother has a mortgage for a house he doesn't live in so is forced to live in rented accomodation until it's sold. It is also dependant on your SIL paying the mortgage every month. My OH did this for a while with his ex and insisted on using his child maintenance payment to pay the mortgage so she couldn't spend it elsewhere and run up arrears which he would have then be 50% liable for.
In divorce (which I know this is not) the equity/ debt starts off at 50/50 split and then is adjusted depending on income and dependancies. So for example if one partner earns £40k and one earns £10k and there was £10k debt. The split will probably be something like 80/20 in favour of the one earning the least only paying 20% of the debt. However as they're not married it might come down to whose name is on the debt, i.e is it joint or in one name?? I'm no expert so have a look around online.
The other thing to say is that after a 13 week waiting period JSA claimants can get help with the interest payable monthly on the mortgage for up to a year. There's some complex rules on this so if it's applicable the benefits office/CSA would be the best place to go.
One final thing is if your brother is continuing to pay the mortgage for your SIL to live in the house it reduces the amount of child support he owes. I don't know the exact rules so it may be worth looking up.
Hope I've not confused you with all that. It seems that after my OH messy divorce (5 years long) and my brothers split, I know more than I thought on the subject.
17/01/2014 at 17:10
Thanks BLL - Ive read through all of that and it makes sense and seems like it will be easier that I first thought - its the mortgage and debt thing that they need to sort asap.
Thanks again, I appreciate the time you took to write that out for me xxx
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