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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.


Transferring Property in to STBX sole name

  • Millie73
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11 Jun 12 #336151 by Millie73
Topic started by Millie73
We have a joint property - no mortgage and it is in France. I intend to sign my share to stbx but must this be done before the Decree Absolute?

I am concerned there may be a tax implication if this is not done before we are finally divorced. Could anyone advise?

Many thanks

  • LittleMrMike
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12 Jun 12 #336212 by LittleMrMike
Reply from LittleMrMike
Hmmmm - not sure.

The tax implications, from a UK point of view, are capital gains tax and stamp duty land tax.

If the house were your sole or principal residence, then the chances are that in England it would not be subject to CGT.

A transfer of your half share in England pursuant to a Court order is not subject to stamp duty ; but a Court order can''t come into effect until Decree Absolute, so in England transferring the property before the order risks losing the benefit of this exemption.

But this property is in France and really, nobody on wiki can advise about that. I seem to recall reading something that in France duties payable by reference to transfer of property were much higher than they were in England.

As far as England and Wales are concerned, I think you should not transfer property in anticipation of the order. But France - well, sorry, I don''t know but it would be worth taking advice. I would have thought it a very high probability that a transfer of property in France would be subject to French law and, sorry, we don''t do French law here.

LMM

  • Millie73
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12 Jun 12 #336251 by Millie73
Reply from Millie73
Thanks.

Under UK tax laws - assigning properties to wife/husband is exempt from any capital gain. To me, it would make sense to transfer prior to Absolute whilst it is considered no gain.

The property is not either of our main residence - just a small holiday home and not worth a large amount.

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12 Jun 12 #336256 by dukey
Reply from dukey
Tax implications are really for accountants to advise on.

Mike is concerned about property law and jurisdiction in France and he has good right to be, the law is very different indeed.

Any which way this works out it is never wise to transfer property before you have a sealed Consent Order, if the agreement breaks down you massively complicate the issue should it end in court.

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12 Jun 12 #336258 by Millie73
Reply from Millie73
yes, thanks, I do understand what you are saying.

However, I''m working towards the paperwork process for the transfer - all but my final signature being drafted now.

Once the Consent Order is approved by the court, then I finalise the transfer. A few days later once I''m happy everything has gone as planned, I will apply for the Absolute.

I will look into the French taxes but based on the above. Can you envisage any problems?

Many thanks

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12 Jun 12 #336261 by dukey
Reply from dukey
When done by consent as you are usually the road is smooth, there are a few exceptions as with any process but generally speaking all should be well.

The problems wiki has seen with property transfer tend to be those by order of court and not consent, in other words a judge said right its time for me to tell you both who gets what.

  • Millie73
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12 Jun 12 #336263 by Millie73
Reply from Millie73
Thanks.

Yes, we are pretty much agreed on everything.

I''m just waiting back information from a notaire now regarding the tax implications - figures crossed it might be good news.

Thanks again

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