equity in former home

hope someone can shed some light on this.

i have a client who separate from their partner and is now living in rented accommodation and receiving Housing benefit. the divorce settlement is nearing completion. their is substantial equity in the family home which the ex is still occupying. the agreement is that he will buy her share of the property. however he is not able to raise the full amount, for a further 18months. if she were to settle now my client would not get the value of her share in the property.

my question is this does she have to inform housing benefit of the decision and will it effect her current claim even though she will not receive any payment until the middle of next year. as i understand it she does not need to do anything until the money is released to her, am i right?

thanks

thanks for the reply

it mirrors my own belief. i wanted others opinions as my clients solicitor had scared her by suggesting HB could stop any time soon, due to the fact an agreement had been made even though no money had changed hands

the decision i was referring to, was in-fact the divorce settlement, yet to signed (my poor use of the english language). my client will not be taking her name of the house deeds or the mortgage until her ex raises the necessary money to buy her out

I assume your client has already informed the Council that she is the joint owner of the property, therefore she need not inform them unless and until the house is sold and her capital is held in a different form.

Given that the right to apply for a property adjustment order as part of a divorce settlement is not a capital asset [R(IS)1/03], it is apparent that until matters are settled, the capital asset that she does have is the amount that a willing buyer would pay for her share, with all the incumbrances and commplcations that are attached to it .[R(JSA//02]

It is arguable that the value could be near zero at present.  When matters are finally settled, that will of course be a change of circumstances and her actual capital will then be taken into account (possibly subject to a 26 week disregard if the money is earmarked for purchase of another properrty which she intends to occupy as her home.)