Divorce proceedings / capital gains tax

thewire2020

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My friend is beginning proceedings for divorce , one child age 8, a business ( in friends name ) and one family home ( in partner name)
Married 12 years, separated 2 years

Friend moved out of family home and shares custody 60/40 ( 60 to the friend)

Maintenance has stopped

Court session applied for reinstatement of maintenance , friend has issued their statement of means ( friend has 20 hours weeks job)

Friend wants to purchase a home from divorce settlement for them and child as they are currently living with a friend who has taken them in

not sure how long this process will take as the EX is threatening to not pay there was physical and verbal emotional abuse in marriage

Question came up

Will capital gains tax have to be paid assuming sale of home and business goes through ?
 
Will capital gains tax have to be paid assuming sale of home and business goes through ?
If it's the family home then won't it be eligible for PPR CGT relief? Full relief if it was never rented out?
What are the details of the business? I don't think that there's any relief from CGT on the sale of other assets in the context of a divorce. Perhaps if assets are transferred between spouses but that may not be relevant?
As ever, the first port of call for such questions should be the individual's legal team. If they don't know the ins and outs of the tax issues then they can probably suggest someone who does.
Maintenance has stopped
From whom to whom? What sort of maintenance? Child or spousal? (The latter can qualify for tax relief in case it matters).
 
Yes its the family home never rented out small mortgage remaining
Yes they have a solicitor but the ex mentioned CGT and we just wanted to clarify
Maintenance for the child only not spousal and agreed payment was stopped 3 months ago by the father ( not court ordered)


Thank you @ClubMan
 
Yes its the family home never rented out small mortgage remaining
Yes they have a solicitor but the ex mentioned CGT and we just wanted to clarify
If it's the family home PPR and was never rented then I don't see how CGT would be an issue. Maybe the ex doesn't understand, is trying to sow FUD, or there's some information missing that would make CGT a genuine issue?

CGT in relation to the business may be a genuine issue but there's far too little information available here to comment meaningfully.

In my experience and knowledge it's best to try to come to some mutually agreeable arrangements through negotiation via the respective legal teams if at all possible. Depending on the court/judge to impose terms can be a lottery and they generally prefer not to have to do it themselves. But sometimes it may be the only way to get some things resolved/settled.

Your friend should primarily be guided by their legal representatives and use them as the first port of call for all questions arising.
 
Some information that may be of use...
 
It would be much easier if you referred to people as husband and wife or he and she as the story is very confusing and discourages people from trying to get their head around it.
 
Following up on this, husband has sent In his affidavit of means and has lied about available funds, expenses he has, car he’s driving , says he driving in a car worth 10k when in fact it a new car worth 70000 . Wife is going to contact her solicitor to make them aware of this issue plus to highlight funds in another country that have been omitted .

Claims he buys clothes plus shoes for child etc this I’m also false. No maintenance still since before Christmas . Will judge believe affidavit of means or if the wife can show evidence of his other funds plus details of the husband car ? Can this be admitted by wife solicitor against Husband .

This situation is all new to us and very distressing so please forgive my wordings , we are extremely upset by all of the husbands lies . The husband has recently made contact with the wife Saying they love her and they can resolve this etc but wife has heard it all before and is not willing to tolerate him anymore
 
Just be aware he could be Driving a new 70000 car that is not his own,
Leaving anything out or omitting details in affidavit is serious and will not be tolerated once it can be proven,
Is She working 20 hrs a week in the Business she owns or is this a separate Income,
You say no Maintenance since before Christmas we are now almost into May She need to get maintenance for child straight away first ,
She appears to be focusing on the Divorce instead of sorting out court ordered Maintenance first,

They only thing for certain is both will be away poorer when Divorce comes trough,

They best advice any friend can give anyone in this situation is to try and sort and agree things out as much as possible between themselves,
best outcome for the Children or child welfare in this case is what is going to be taken into account How that Support can best be supplied by mother and father will decide what happens first, assets are away down the list for now,
 
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Can this be admitted by wife solicitor against Husband .
Her solicitor should know how to broach the issue of an allegedly false affidavit of means with the husband's solicitor in the first instance and the court if necessary. She should be guided by the solicitor's advice and not get directly involved with the husband or anybody else on this matter - just her solicitor.
 
Wife is working part time in a bakery minimum wage , getting maintenance is her first priority

Thanks for replies , wife will make contact with solicitor on Monday to get advice
 
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