Ex not applying for benefits - why?

A brief summary of the situation: I left my wife in the family home (joint mortgage) 3 months ago. 3 children, youngest is 2 and eldest (9) gets DLA and is struggling with school. I want them to be able to stay in house, and not expecting her to work yet, but benefits calculator suggests she's entitled to a decent amount of universal credit (UC), assuming savings below £6k limit, and she said she'd do that.

We had extended the mortgage to fund an extension and until actually needed £20k was in an ISA in her name, the rest in accounts in my name. With the split we agreed to pay back against the mortgage, £25k total (overpayment limit), £15k from her (to get her below UC limit), £10k from me. Rest of the money to be sorted out as part of the financial agreement and whatever remortgaging might result.

But now after me paying my £10k back, first she says she'll only pay £12.5k back as she needs money for house repairs. That's OK with me as I accept they're necessary and still means she could get full UC. But now she's saying she's not going to pay anything back at all! She's not saying about spending on anything else significant (and that might be disposing of assets from UC point of view anyway, whereas debt/mortgage repayment is OK), and if keeping it 'just in case' she's stopping herself getting UC at all!

So, what's she playing at? I hope if it continues it would definitely be seen as not reasonably maximising her income if she won't/can't work AND prevents herself from claiming benefits. Sadly all I can come up with by way of explanation is as a way to get back at me - her forced to live off that capital until it's gone then apply for UC anyway, and try to claim she needs spousal maintenance in the meantime. As I'm guessing the most likely outcome of any financial agreement is she gets most/all house equity to stay in it and I get the more liquid capital, it's a way of reducing what I get.

Am I just being cynical/pessimistic? Any other explanation? Anything I can do about it?

Hi,

Treat it like a business agreement, be polite and firm, get/confirm critical things in writing. Sleep on emails that need to send. Nothing inflammatory.

1. Keep a record of the date and have a receipt of the payment for later.
2. Ask for a list of the building repairs.
3. It none of your business if she applies for benefits, it's the courts, go online and use a benefits calculator(e.g turn to us) as if you are her. Print and keep. You have raised it, don't worry about it, have it to tell the court about earing capacity.
4. Can you afford the 2.5K, if you saved money by putting it in her name? Pay the account directly do not give cash or blank cheque. The court will take your goodwill into account. tell them.
5. Again it's none of your business what or what she does not claim. Or how she keeps her assets. I'm sure you would grimisk at her telling you what to do.

Keep your chin up, be fair-ish, keep your nose clean, keep records, Ke sane.

Good luck.