Decision Makers Guide - DMG42021

Matrimonial assets on breakdown of marriage

A separated or divorced person may have a beneficial interest (DMG41026) in any property of the marriage such as the former matrimonial home or a joint building society account. If the property is

1) jointly owned and
2) not disregarded under DMG44001 onwards

the decision maker should calculate the value of that interest in the normal way.

Note If all the person's beneficial interest in the property is legally contested, the decision maker should accept the property to have no value until the question of ownership is settled

Example 1

An ex-husband and one child occupies the former matrimonial home. The home is jointly owned by the ex-husband and applicant (ex-wife) who lives elsewhere with two children. Both parties are taking legal action to obtain sole ownership of the property.

As the applicant could eventually own the whole, or part or none of the property, the decision maker values the applicant's interest at nil until the question of beneficial ownership is resolved.

Example 2

• An ex-husband occupies the former matrimonial home. He has evicted the applicant, who is his ex-wife, and three children. The home is jointly owned by the applicant and ex-husband. She has taken legal action to obtain ownership of the whole property. The ex-husband agrees that the applicant has a half interest in the property but he is legally contesting her application to his half.

• At the time of the application the applicant has an uncontested joint beneficial interest in the property (the value of that interest, does not matter).

• The decision maker

• takes into account as her capital (DMG41040) a deemed share in the property and

disregards the value of the applicant's capital asset under DMG44012(6). for the first 26 weeks after her eviction.