For couples contemplating separation or divorce the emotional pressure, sadness and worry is uppermost in their minds and rightly so.
Few will think about the financial consequences of the date of separation; however this can make a difference to the amount of capital gains tax that you may be liable to pay.
In circumstances wherein addition to the family home there are assets to transfer such as shares in a family business, an investment portfolio or second properties, these can be transferred from one spouse to the other exempt from capital gains tax, but only in the financial year of separation.
So separating from your spouse only a few months before the financial year end will inevitably mean that the tax free exemptions would be lost unless agreement in respect of division of assets can be reached quickly.
Couples are advised to seek expert advice guide to them through the legal minefield of financial negotiations.
For more information on this or similar issues please contact Shelley Chesworth in our family team on 0161 475 7622.