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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34123
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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My wife and I are going to live apart. My wife intends to live

Resolved Question:

My wife and I are going to live apart. My wife intends to live in our joint house which we own jointly, as we have lived there for 28 years there is a large capital gain. I am purchasing my own property. My wife intends to sell in her own time. What is the best way to avoid paying capital gains or keep it to a minimum?
Submitted: 2 years ago.
Category: Property Law
Expert:  Clare replied 2 years ago.
HI
Thank you for your question
My name is Clare
I shall do my best to assist you but I meed some further information first.
How much is the house worth and how much is outstanding on the mortgage?
Will the property be transferred into your wife's sole name?
Are you considering an immediate divorce?
Clare
Customer: replied 2 years ago.
Morning
The house is worth £520000, mortgage free. The property I am buying is £210000.
Property not being transferred to wife, we will sell this property at later date.
We are not divorcing just going to live apart. When we sell the property, probably 2015 my wife will buy her own house.
Expert:  Clare replied 2 years ago.
Hi
What other assets and debts are there and what income do you each have?
Clare
Customer: replied 2 years ago.
We have investments totalling about£1,400,000, I have a private pension pot of about £180,000.
We have no debts.
I have a state pension of 12k before tax.
We have the house 500k, my property contract not yet signed.
Expert:  Clare replied 2 years ago.
Hi
Is there any reason why your wife cannot simply have the house as part of her assets hare and have it transferred into her name immediately?
Clare
Customer: replied 2 years ago.
Hi Clare, non what so ever if this is best option, can this be done legally , so if we eventually divorce it's taken into account?
Mike.
Expert:  Clare replied 2 years ago.
Hi
Given that there will be a substantial potential liability the most effective way forward would be for the property to be transferred to your wife's sole name thus ensuring that there is no liability for CGT at all.
This should be backed up by a formal Separation Agreement setting out the financial agreement that you have made
Whilst it is not necessarily binding it is unlikely that the Court would not subsequently endorse the agreement - and in any event the fact that she has had the house will always be taken into account
I hope that this is of assistance - please ask if you need further details
Clare
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