Is the transfer of assets following divorce a CGT event?

• There are a number of rollover provisions that apply when GGT assets are transferred between spouses following a marriage breakdown.
• In order to apply for the exemption the assets must be transferred under court orders or a court approved settlement.
• The basic rule is that the original cost base and acquisition date are transferred with the asset.
• If a new intangible asset such as a right or an option needs to be created its cost base will be confined to what was actually spent on bringing it into existence. This will include legal fees and stamp duty.
• If the parties decide not to get their agreement made into consent orders or otherwise approved by a court then normal CGT rules apply.
• This can be problematic as the assets will be taken to have been transferred for their market value even if they were transferred for a lower amount between the spouses.
• You can use our LegalPlan™ membership to call for tenders from experienced lawyers who may be able to assist you with minimising your CGT obligations following a divorce.