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    Divorce Payout

    Hi,

    I am after some advice regarding divorce pay out and universal credit. I am going through a very messy divorce and am set to get around £35k from the sale of the fmh.
    I have a rented house, work 16 hours a week and have two children under the age of 10, one of which requires 24/7 care due to being disabled.
    I have around £24k of marital debt to clear as well as around £8k of solicitor fees. I don't have the capacity to buy another home big enough (4 bedrooms - as i have a carer stay too)
    My question is, if i receive the £35k into my account and use it to clear the marital debt and solicitors, will it be classed as capital and my universal credit stopped? I will be left with about £3-4k once everything is paid off.
    I can only find equity disregard if the money is to be used to buy another property. However the debt is from improving the fmh which is now sold (although not completed)

    Any help or advice would be appreciated. Thank You

    #2
    Originally posted by Missymoo89 View Post
    Hi,

    I am after some advice regarding divorce pay out and universal credit. I am going through a very messy divorce and am set to get around £35k from the sale of the fmh.
    I have a rented house, work 16 hours a week and have two children under the age of 10, one of which requires 24/7 care due to being disabled.
    I have around £24k of marital debt to clear as well as around £8k of solicitor fees. I don't have the capacity to buy another home big enough (4 bedrooms - as i have a carer stay too)
    My question is, if i receive the £35k into my account and use it to clear the marital debt and solicitors, will it be classed as capital and my universal credit stopped? I will be left with about £3-4k once everything is paid off.
    I can only find equity disregard if the money is to be used to buy another property. However the debt is from improving the fmh which is now sold (although not completed)

    Any help or advice would be appreciated. Thank You
    hello and welcome to our community

    Using capital to pay debt is always ok. Is the debt in your name or joint names?

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