After her divorce, a woman in Valencia became the sole owner of the family home. The regional High Court confirmed that her assets, valued at €27,145.98, exceeded the legal threshold for her and her daughter. She so lost the €652.37 monthly Ingreso Mínimo Critical benefit.
In its July 2026 ruling, the court found that the property settlement, which gave her the home and household furnishings, put her above the €23,684.64 asset cap for her household. She argued that the €23,000 mortgage still owed on the property should reduce her countable assets. The court rejected that argument: the law then in force did not allow mortgage debt on a basic residence to be deducted from assets.
As of 2026, the guaranteed minimum for a single IMV recipient is €733.60 per month. Asset assessments refer to Ley 19/2021.
Her ex-husband received a garage space and a car; he also received a credit right. The family home, valued at €55,000, put her over the limit. An administrative review based on 2020 tax data led to the withdrawal of her benefit. The INSS calculated her assets without subtracting the mortgage, as required by Real Decreto-ley 20/2020. The court noted that she had provided neither an alternative calculation nor supporting documents. Information from Democrata, the court agreed with the INSS that the remaining mortgage could not be deducted from the asset calculation under the law applied in her case.
For families relying on the Ingreso Mínimo Critical, the distinction between income and assets matters. The benefit amount depends on income, while eligibility rests on total assets. Even with low monthly earnings, exceeding the asset threshold means losing the benefit, regardless of debt. The court's decision confirms that the rules do not change with personal circumstances or the way property is divided. As Democrata notes, the IMV system in 2026 still counts income and assets, and mortgage debt on a basic home does not reduce the total used to determine eligibility.
The law has changed since the benefit was first awarded in April 2021. Current Ley 19/2021 allows some debts to be deducted from assets but specifically excludes mortgages on a basic residence. This leaves many divorced or separated parents in a difficult position: receiving a home in a settlement can disqualify them from support, even if they still owe money on the property.
Legal experts say each case depends on the timing of the review, the household makeup and the assets involved. Anyone facing a similar review should verify the tax year used and the applicable law, including which assets count. As reported earlier, Spanish courts have enforced strict interpretations of social benefit rules, even when the results are harsh.
Spain's welfare system applies asset tests strictly. Mortgage debt on a basic home does not protect families from losing aid. The court's refusal to treat the mortgage as a mitigating factor reflects a broader pattern of strict enforcement. For vulnerable families, the gap between legal definitions and daily reality can be severe, while the system leaves little room for exceptions.
