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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.


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Capital Gains on FMH

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01 Oct 07 #4185 by djlman
Topic started by djlman
Hi! I'm new to this forum, and although my Consent Order has gone through the courts, I just have a question around the proceeds of a charge on my FMH.

I left the property in October 2005, and have now transferred the house into my ex-wifes name, but have a charge for 21.9% of the sale price of the house. My name is still on the mortgage of the FMH, and I effectively pay for this with my spousal maintenance.

Because of this, I do not own any other house, or pay for any other mortgage (can't get one!) and currently rent.

My question is this:
Do I have to pay capital gains tax when she sells the house, or one of the triggers is actived against the charge as this is the only house I have ever invested in?

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01 Oct 07 #4191 by Sera
Reply from Sera
I started a Capital Gains Tax thread, (in this financial section):

www.wikivorce.com/joomla/Divorce-Forum/F...pital-Gains-Tax.html

I'm not sure if any of that advice will help your situation?

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01 Oct 07 #4193 by Fiona
Reply from Fiona
Here the circumstances are different. I won't go into detail but when there is a Mesher order there should be no CGT liability.

In the unlikely event there is no Mesher you could still apply for relief from CGT as you are renting and don't claim relief on a new property.

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01 Oct 07 #4196 by djlman
Reply from djlman
Thanks Fiona and Sera, but I'm not sure that answers the question. I've heard of a Mesher order, but I don't think that's what I has as my ex-wife has the property in her sole name with the charge against it at the land registry.

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01 Oct 07 #4197 by Fiona
Reply from Fiona
Sorry. Where a spouse continues to hold an interest in the former matrimonial home it's transferred into trust and where the trust arises by order of the court, it is known as a ‘Mesher’ order.

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01 Oct 07 #4198 by Fiona
Reply from Fiona
Sorry. Where a spouse continues to hold an interest in the former matrimonial home it's transferred into trust and where the trust arises by order of the court, it is known as a ‘Mesher’ order.

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