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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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Our consultant service offers expert advice and support to help you reach agreement on a fair financial settlement quickly, and for less than a quarter of the cost of using a traditional high street solicitor.


Value of Assets

  • ag234
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25 Jun 07 #960 by ag234
Topic started by ag234
I am trying sort out a settlement, and my wife wants to keep the family home, which is something i would like to facilitate, if only for the children.

However, apart from this asset( net value £420K),we have 4 properties which are buy to let. In calculating the net value of these, do I need to account for Capital Gains Tax, or is that excluded from calculations.

Does the net value only come into play when I actually sell them, or if I can avoid selling them, can the potential tax be taken into consideration?

Assuming that we are looking at a roughly fair split of assets (we have been married 12 years, and total assets are enough for us both to be alright), how are the values calculated.

The other issue is that in her keeping the house, she has a single large asset which doesn't need to be sold.

I, on the other hand have 6 smaller assets all of which need to be sold to give enough cash to buy a decent house for the kids and I.

The cost of these sales ( fees, CGT, mortgage redemtion etc etc) is a very sizeable sum. Is this taking into consideration when dividing up assets??


Any help greatly appreciated.

Andrew

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25 Jun 07 #965 by Princess Fiona
Reply from Princess Fiona
The short answer is, yes, all liabilities are taken into account. Working them out is a another matter!

You should be aware that assets can be transferred between spouses who live together at some point during that tax year without gains being chargeable. The exception to this is the FMH where Private Residency Relief ends three years after someone moves out. See;-

www.hmrc.gov.uk/helpsheets/ir281.pdf

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25 Jun 07 #970 by ag234
Reply from ag234
Thank you. That is very helpful.

Now I just have to explain taxes to her........

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