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ANDREW MOORE, Solicitor, Mills & Reeve LLP, Manchester
There are a variety of reasons why parties to a divorce may decide to defer the sale of a property and, consequently, their capital entitlement in it. These might include securing accommodation for the children of the marriage during their minority and/or education, an inability to sell the property in a deflated housing market or a wish to delay a sale until the economy starts to improve and a greater financial gain can be realised. Triggers for sale, such as the elapsing of a period of time or a child finishing university can be agreed and documented by the parties to provide certainty and the ability to plan for the future. This article looks first at the possible scenarios that may arise, summarises the relevant basics of Capital Gains Tax (CGT), and then looks in more detail at the tax, legal and practical considerations for the family lawyer when a deferred property sale is contemplated.
To read the rest of this article, see January  Family Law journal.
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This work provides commentary, checklists, procedural guides and precedents on the subject in a...