This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Divorce and Principal Private Residence

FiM
Posts:1
Joined:Mon Oct 17, 2016 9:06 pm
Divorce and Principal Private Residence

Postby FiM » Mon Oct 17, 2016 9:13 pm

With a divorce now going through, with one party having moved out 2.5 years ago, but to a rented apartment (and thereby having no other PPR other than the former matrimonial home) and with the party who moved out wishing to put a legal charge on the property (but take their name off the deeds) until the house is eventually sold by the spouse or when the spouse is able to pay off the other party and stay on in the property, will there be any CGT to pay once completed, either way, as part of a consent order for the divorce, no matter how long it takes? Is it better for the party who moved out to indeed take out this legal charge and remove their name from the property, or is it better for that party in CGT terms to keep their name on the property and as part of the divorce proceedings seek half of its value once eventually sold, or when the spouse currently living there has enough money to pay the other party their half. Or are both scenarios as good as each other? There is no mortgage on the property.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Divorce and Principal Private Residence

Postby pawncob » Tue Nov 22, 2016 12:45 pm

With a pinch of salt take what I say, but don't exceed your RDA

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Divorce and Principal Private Residence

Postby maths » Wed Nov 23, 2016 8:14 pm

These are issues that should have already been thrashed out during the divorce proceedings ie either you simply have a charge over the property for an amount of money (eg 30% of sale proceeds) or you still own a beneficial interest and retain such until property eventually sold (eg if a remarriage or kids become 18 or some other scenario agreed between the two of you.


Return to “Capital Gains Tax, CGT”