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1. No she is not entitled to legal aid as she is not settled in the UK, she must have had indefinite leave to remain if she wishes to access public funds.
2. House will depend on whether it formed part of the marital assets etc which will be determined by the courts if you chose to process your divorce in the UK.
3. If you inform the UKBA that your marriage is no longer subsisting then the UKBA will curtail her visa and she would not have any permission to remain in the UK and will be asked to leave the UK.
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Just in addition.
Your wife may wish to submit an application regarding remain in the UK on the basis that she has access to the child, but that application would be up to her to make should she wish to do so. If she does not and her visa is curtailed she will need to leave the UK,
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