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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

Seperation and Tax

2 replies

Sisiwawa · 14/07/2022 10:46

Hi all I'm trying to get my head round the divorce and consent order process.
Please could you clarify - does the consent order happen at the same time as the final order, or is it some time after?
We haven't formally separated yet. I have a BTL property which my husband may accept in the form of equity from our family home. Ticks a lot of boxes, nearby, suitable etc.
My solicitor said this may be do-able but that for capital gains purposes, we need to seperate in the same tax year as I sign the flat over to him. As I haven't yet started any of the process, do you think this could all be done before April 5th next year? Otherwise I'd have to pay tens of thousands in tax.
I know there's a backlog of divorce cases.
Or if I wait to do it next tax year, does that mean we can't formally seperate until then? Hes unable to live with family, friends etc so would need to rent for a while until everything is progressed. I do have a solicitor but it's so expensive just to ask little things, have also looked online etc.
Thanks

OP posts:
BetterFuture1985 · 15/07/2022 12:33

Sisiwawa · 14/07/2022 10:46

Hi all I'm trying to get my head round the divorce and consent order process.
Please could you clarify - does the consent order happen at the same time as the final order, or is it some time after?
We haven't formally separated yet. I have a BTL property which my husband may accept in the form of equity from our family home. Ticks a lot of boxes, nearby, suitable etc.
My solicitor said this may be do-able but that for capital gains purposes, we need to seperate in the same tax year as I sign the flat over to him. As I haven't yet started any of the process, do you think this could all be done before April 5th next year? Otherwise I'd have to pay tens of thousands in tax.
I know there's a backlog of divorce cases.
Or if I wait to do it next tax year, does that mean we can't formally seperate until then? Hes unable to live with family, friends etc so would need to rent for a while until everything is progressed. I do have a solicitor but it's so expensive just to ask little things, have also looked online etc.
Thanks

You won't get good advice on a complex question like that here. Lots of variables, some of which depend on where you are getting divorced. Even a lot of family solicitors will struggle with questions around tax and can only really be effective by talking with the accountant who works in their dept.

Flerp · 15/07/2022 14:23

Get a tax advisor. CGT is a messy messy business with divorce. Despite what you can Google there are so many other aspects that need to be considered. Your solicitor won't be able to advise you accordingly and it'll save a lot if heart ache in the long run.

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