Sarah Bradford examines the capital gains tax implications of a sale or transfer of the marital home on separation or divorce.
When a couple separate or divorce, this usually results in a change in the couple’s living arrangements. The marital home may be sold, with both parties buying new homes from their share of the proceeds; or one party may decide to remain in the marital home, buying the other party out.
Where children are involved, the couple may come to an arrangement whereby one parent remains in the home with the children until the youngest child is (say) 18, at which time the property is to be sold and the proceeds divided between the parties.
When looking to sell or transfer an interest in the marital home, the capital gains tax (CGT) implications need to be taken into account. Recent changes in the law, reducing the final period