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Change to Separation Agreement

including wills and probate
GoSeigen
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Re: Change to Separation Agreement

#397835

Postby GoSeigen » March 22nd, 2021, 8:45 am

pochisoldi wrote:
Chrysalis wrote:Radical proposal but...why not keep the property and give her the (net) income it generates? Seems to satisfy all round.
I can see why keeping the income of a property which was part of her settlement (I guess she never actually wanted it, but wanted child maintenance instead?) might not look too good.
How do you split the costs for the children? (Other than their board and lodgings of course). Clothes, kit, school trips, extra curricular stuff, that kind of thing.


So she gets all the income with no effort?

If I were to do that, it would be after deducting a 10 to 15% management fee. If she wants the income without the fee, then execute the transfer.

Carrot and stick.


This would be the last thing I'd recommend to the OP. He needs to get ex-wife out of his hair. This will just keep their lives entangled for years to come and cause grief when it is least needed, e.g. what happens if house prices crash, or there's a long void, or if something bad happens (failure to pay rent and difficulty evicting), or if the ex doesn't think the income is sufficient? 15% fee in no way compensates IMO. I'd want 50% probs.

EDIT: Ah, if it's 15% of the rent that might be sufficient.

GS

anniesdad
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Re: Change to Separation Agreement

#398088

Postby anniesdad » March 22nd, 2021, 7:58 pm

Thanks for responses. It’s been useful for me to talk it through and to see other perspectives

1. I don’t really want the hassle of selling it. Leasehold flat, mortgage buyers may need the lease extended, which may cost me £10k. I then take the risk of buyer pulling out leaving me with a £10k lease that I didn’t need. I had to sell other property and I’ve seen it’s not always straight forward.

2. If I sell I pay capital gains tax. If I transfer it I don’t.

3. It seems silly to give £ thousands to tax man or charity when we could be using it for something productive for our children. University fees maybe.

The agreement we made took all these points into consideration.

PinkDalek
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Re: Change to Separation Agreement

#398107

Postby PinkDalek » March 22nd, 2021, 9:48 pm

anniesdad wrote:... 2. If I sell I pay capital gains tax. If I transfer it I don’t.

3. It seems silly to give £ thousands to tax man or charity when we could be using it for something productive for our children. University fees maybe. ..


Don’t forget eisman’s reply on one of your earlier related topics:

Transfer property to estranged wife
viewtopic.php?p=327808#p327808

I haven’t double checked*** but have no reason to believe eisman was wrong and your reply included:

I didn’t think CGT would apply but there is a clause that she is liable if there is any.

Seems to me CGT will effectively be borne by one or the other of you either way (always assuming there’s a chargeable gain after incidental costs and the annual exempt amount).

*** Should you wish to check, the HMRC HS281 Helpsheet is here https://www.gov.uk/government/publications/husband-and-wife-civil-partners-divorce-dissolution-and-separation-hs281-self-assessment-helpsheet/hs281-spouses-civil-partners-divorce-dissolution-and-separation-2019


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