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Property transfer in divorce settlement

Is this correct??

*Kwils*
post 18.May.2016, 01:33 PM
Post #1


Hi everyone,

I am posting on behalf on my partner who is now divorced but still currently living in the same property as his ex whilst they reach a financial settlement. She ring fenced a sum of money she had inherited and he signed this, without legal advice and so is not in a great position. I'm British and so unable to help much with the legalities and procedural stuff.
What I would like clarity on is; if he transfers his share of the marital home to her (she buys him out) are they required to pay 1.5% of the current value to an estate agent? It seems preposterous to me. There will be no effectual sale And she will take over the mortgage (this has been approved from what I understand). Of course there will be capital gains tax to pay but as wewill hopefully buy a property he can postpone this.
Any help most gratefully received. She is trying very hard to ensure he comes away with 1/100 of her total, and there's not a Lot to start with.
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LLHope
post 18.May.2016, 03:18 PM
Post #2
Location: Stockholm
Joined: 1.Jan.2014

I suggest that your friend contact the court and request them to appoint someone to do the division of assets.

Just because he signed a paper doesn't mean anything right now, was it witnessed etc... not all inheritance is protected in a divorce, it depends what it is, when it happened, and even can depend upon the wording of the Will, if there was one.

With regards the property, simple, no capital gains tax to pay ...assuming the other party stays in the property. He should request an estate agent come in and do a thorough valuation, to get current market value (that is what is to be divided). If the other party becomes difficult, cannot or will not buy-out at an agreed value, then he can make it so that the property is sold and the proceeds divided (once loans are cleared).

Since there is no capital gains for him (the asset has not been sold, he is just recovering his share) then of-course there is no possibility to defer tax, because there isn't any biggrin.gif

...note, if the property is indeed sold, then of-course there is the resulting capital gains and possibility to defer.

...and if your friends ex was smart then she would have an agreement signed that since there is no capital gains tax on the buy-out, he should agree to pay his half of estimated capital gains at the point of the division of assets ...to be paid when she eventually sells the apartment sometime in the future biggrin.gif
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