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Capital Gains?

  • farmerdave
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17 Aug 12 #350051 by farmerdave
Topic started by farmerdave
Hi all,
A brief outline first. Married 14yrs together 16yrs,2 kids 13 and 4,me 46 her 44,wife wants a divorce ,no longer loves me,FH value 700k in joint names ,morgage of 92k,savings 55k, both have ISAS 38k each,me now unemployed wife full time student untill next year.I have payed any morgage payments all our married life apart from 3 yrs living rent free in a house provided by my job.Having both seen solicitors indipendently and having heard much the same from both regarding division of assets,my wife tells me her mother will provide her with the funds to buy me out of my share of the FH but says that I will have to pay capital gains on that sum unless we are divorced,she now wants to do this on grounds of UB she has no reason for this but says that her solicitor has advised as this being the only way forward as my wife wants to stay in the large FH and not sell and buy two much smaller homes. Is capital gains an issue here? the FH being in joint names and my/our main residence? Any help or advice appriciated.

  • TBagpuss
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22 Aug 12 #351087 by TBagpuss
Reply from TBagpuss
CGT is not payable on your principal residence, so as long as you don''t own any other property, you should not have any liability. Transfers between Husband and Wife also don''t normally attract any CGT.

as long as you don''t buy a new property until you have transferred your interest in the old one, I don''t think you have any CGT liability, but if you are concerend, check with an accountant or your local tax office.

You wife''s mother may, of course, have a CGT liability on whatever assets she is selling to raise the money to lend her daughter, but that would not be your responsibility.

In terms of the divorce, UB is very much a ''catch all'' as it is a subjective, not an objective test - if there is behvauiour which you *wife* feels *she* cannot reasonably live with, it doesn'';t matter whether an objective obnserver would agree with her or not. UB does not have to be "bad" bevahiour, and you do not have to agree with what she says in order to agree to allow the divorce to go through (you can, in efect, agree that the marriage has broken down but not agree that your behaviour is the main/only cause for that)

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