Universal Credit and Mesher Order

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  • #61734 Report


    Hi all,

    I’ve tried finding answers to this everywhere, but no joy.

    Long story short, unfortunately my wife and I are looking at divorce. It’s all very amicable and we are on good speaking terms.  We have two primary aged children so are keen to keep the family home, at least in the short term to cut down on the disturbance to them.

    There is no way that my wife could afford to run the family home on her own, and impossible for her to take the mortgage on on her own too. I however can, and it was assumed that I would take on the house and she would look to rent.

    Thing is I won’t have enough fund for a couple of years to take the mortgage on myself, and she won’t be able to afford to rent anywhere without the help of universal credit.

    From our understanding, Universal credit discounts any form of capital for the first six months. Then however, they would look to remove all her benifits as she essentially is still named on the mortgage and would have a large lump of equity in the house.


    We had looked into Mesher Orders prior to looking at universal credit and were planning on going down that route anyway, as I couldn’t afford to buy her out of the house right now anyway.

    My understanding is that Universal Credit doesn’t take into account fixed term investments. So, my question is, if we had a Mesher Order, which would essentially lock up her equity until a certain trigger is met, would she still get the same or any Universal Credit (they equity would be over the £16,000 allowance). Would it be classed as ‘notional income’, again meaning she wouldn’t get any Universal Credit?

    Is there any other ways around it?

    Our only other option would mean selling the house, but doing this would again leave her in the same spot of having a lump sum of savings and thus getting no Universal Credit.

    She doesn’t earn much, so even with maintenance payments from myself, she would struggle to rent in our area without Universal Income support.

    Thank you for taking the time to read, I hope some of you can help me find the answers we are looking for, happy to explain details further if it would help.

    #61740 Report


    Tagging as I’m in a similar position


    #61741 Report


    I take it you haven’t found an answer or solution then either? Seems like a real grey area with very little info about it readily available. Hoping to speak with citizens advice tomorrow, they may shed some light on it. I’ll post if I find anything out.

    #61788 Report


    Hello to all on this chat. This is something our website will be able to advise on. Helpline – Gingerbread

    We also have a webchat on some days 10am to 1pm Webchat – Gingerbread

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