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Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34264
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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My ex husband and I divorced in November 2011, having

Customer Question

My ex husband and I divorced in November 2011, having seperated in August 2010. We did not sort out financial matters legally at the time of our divorce and still have not. However, we came to an agreement between ourselves that I would keep the family home, which we lived in together as a married couple from June 1999 until August 2010 when we seperated. Both names have remained on the mortgage and deeds. My ex has not purchased any other property since we split and has been staying at his mother's home, rent free.
I have continued to live in the family home with our three sons since we seperated but I am now looking at selling because our sons are grown up but a friend has adviced me that because my ex husband moved out over 3 years ago we will have to pay Capital Gains Tax on the amount our home increased in value since we purchased it.
During our time together at the property it was our only home. We have never owned any other property.
I do not work and my ex works full time and earns approx. £15000 per annum.
We purchased our property for £55000 and spent approx. £50000 improving it. It now has a market value of £145000. There is £70000 mortgage outstanding.
How much CGT will we be liable for?
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 help you but I need some further information first.
How will the equity be divided between you?
clare
Customer: replied 2 years ago.
Thankyou for your reply., the equity will be kept by myself as I need to find another property. My ex husband is going to remain living with his elderly mother.
Expert:  Clare replied 2 years ago.
Hi
In that case please do not worry.
Only your ex would be liable for CGT if he was receiving any of the equity.
Since he is not all you need to do is reach an agreement with your ex to sign a Consent Order confirming that you are receiving all the equity.
This can be sealed by the court and will protect your ex from any liability
I hope that this is of assistance - please ask if you need further details
Clare
Clare and other Property Law Specialists are ready to help you
Customer: replied 2 years ago.
I thought that there was a three year rule, whereby, if the consent order is not made within three years of him moving out then CGT is payable. Is this not the case in our circumstances?
Expert:  Clare replied 2 years ago.
Hi
If your ex was going to receive funds he would have had to pay CGT on his share - since you have remained living in the property that does not apply to your share
Clare