House sale after youngest becomes 18 (post divorce)

by **Wictod** on Mon Jan 30, 2012 1:58 pm

Hi,

Hopefully someone can give me some pointers on what's likely to happen when we sell the former family home regards capital gains tax.

I was divorced from ex wife around 15 years ago when our youngest child was 3 years old. In the decree absolot it stated that I would leave the family home and could only sell it (jointly) when the youngest child became 18 years old. So, I left and went into rented accomodation for about 10 years and then 5 years ago managed to purchase another property to live as I needed to get back on the property ladder again. Well the time has come to finally wrap up all the oustanding business and for both of us to completely move on and I suspect that there will some capital gains I am liable for.

During this period the situation has realtively straight forwards, the kids have lived with their Mother in the former home until the oldest cam to live with me two years ago, the relationship between us has been amicable and fortunately the kids have come out of it unscathed. There have been no lodgers or letting of the property as it's been used solely for the purpose of the ex and kids.

I was reading about the 3 year rule but am not sure how that applys to my situation or wether the fact I spent 10 years in renting has any relation to the capital gains.

any help would be greatly appreciative, Regards

by **maths** on Mon Jan 30, 2012 2:44 pm

Can be a bit tricky.

Do you recall if the term "Mesher Order" was used on your divorce?

by **Wictod** on Mon Jan 30, 2012 2:55 pm

ahh, I don't so actually or do not recognise the abbreviation? the only thing I can recall without digging through all the paperwork were some clauses about the ex not moving another cohab into the home and some stuff about informing me about physical changes to the property etc. It was afairly low key split up and didn't involve legal punch ups about who has the knives and forks our parents bought us. Apart from that, the deal was 50 /50 split on completion but I've decided she can have 70 now which will get sorted when it eventually goes through.

Regards

by **maths** on Mon Jan 30, 2012 11:04 pm

If the numbers warrant it check with the solicitor who acted for you.

If no transfer of equity in the property took place (ie if you owned say 50/50 at the date of divorce and you each kept those shares) then it is likely that no CGT should arise on either party.

However, it really does depend upon the precise structuring under the order.