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Please help, i split with my ex 7 years ago and have always paid CSA for my children. Last year she stopped me seeing them however i still pay. I am moving in with my partner and will be renting my flat. I have been told that because my equity is over £65000 she can have 8% of this. I am confused because my income from the flat wouldn't even mount up to this?? I ask myself further questions about if i sell the flat can she have 8% of this?? I wouldn't mind if the money got spent on my children but it doesn't it gets spent on her!! Has anyone had any experience of this over £65000 asset??
Advice would be greatly received.
Hi Johnbob and welcome 🙂
Theres a sticky at the top of the Finance section called "How does the CSA calculate payments", click on it and you will find a link to a CSA leaflet. On page 28 or 29 of this leaflet there is a small paragraph about this. You are not liable with any property you live in, but when you rent out a property you own, you become liable as it is then considered an asset. It says ~
.......we may look again at the amount of child maintenance in the following circumstances,
The non-resident parent has assets (money or property) worth more than £65,000. Where property is concerned, this is the value after any mortgage to be re-paid has been taken off. Assets do not include the home that the non-resident parent is living in or assets they use for their business, but could include a property they are renting out.
I think from the above statement, if you sold your property and you got less than £65.000 then you wouldnt be liable.
You could contact Child Maintenance Options, theres a link at the bottom of the page, they may be able to advise you further.
Good luck 🙂
oops! The link at the bottom of the page to Child Maintenance options seems to have disappeared!
Heres the freephone number ~ 0800 988 0988
Email ~ www.cmoptions.org
Hi johnbob,
Sort of same situation as you but don't worry unduly. I am typing this whilst waiting for the CSA to call after I spoke to them for the first time yesterday. I had it clarified by a manager that they would not take any rental income into consideration, they didn't ask what equity I had, they did say that it was based purely on my earnings. I'm hoping she gave me the right information.
On another note it's always best to mortgage the rental property to the hilt thus reducing your equity and decreasing your tax liabilities. Also, I'm learning that telling my Ex anything gives her more ammunition, so make sure you are doing the right thing, always pay your way and stay clean that way there will never be any surprises.
Hope it all works out.
Spudgum,
How did it work out for you?
I'm considering renting my flat out.
Just called CM options and she wasn't very knowledgeable
B
If you sell your property and buy another, then you don't get assessed on the £65k as it would be your main home. So you could buy part of your partner's property. Of course, if your partner bought something with the money she's just got from you, then that's her asset, not yours, so the CSA don't take that into account.
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