Life does not always go as planned. Reality does not come with happy endings like movies or stories. Reality is harsh. Sometimes, it is cruel too. Many relationships start with many hopes and dreams, but only a very few last happily till the end of their life. Most of the time, people have to give up on their relationship and find a way of separation. Those days are not easy. Those days can give people harder times, especially if it comes with many financial burdens.
People are already emotionally exhausted. They may forget the financial aspects, but those things can cost them a lot.
Solicitors are good at getting legal solutions in court during separation or divorce. However, they may not be fully aware of the financial facts. So, it is advisable to consult with a tax professional during those days to take care of the finances. Now people may think the court will provide separation orders, and it will be clear what to do next. So what is the need to have a tax advisor here?
If a court orders divorce for a couple, they are considered legally separated, but the entire story doesn’t end here. They may be the joint owner of many assets. Here, assets can be referred to as real estate properties, shares, jewellery, antiques, etc. As they are legally separated now, they may want to separate their assets. Here, the individuals involved can transfer/her assets to another to make sure that they don’t have to own an asset jointly. Earlier, these assets were owned jointly, but now they own them individually. So, it can be considered a capital gain. Now, the owner may need to pay Capital Gains Tax on Separation and Divorce.
Sometimes it may not be as easier as it sounds. Not always, the owner has to pay taxes. There is a catch too. If this transfer occurs in the same tax year when separated, this may not be considered as a transfer for capital gains tax purposes. If this transfer happened after 5th April of the following year when they were separated, this could be considered a transfer between connected parties for capital gain tax purposes. We can understand when someone is going through rough times, and it is not always possible to keep everything on top of their head.
It is quite evident that we may forget some little things. This is why it is advisable to consult with a tax advisor. We can help you with good and experienced tax consultants. They are experienced in handling such cases. So, they will understand the situation and ask for the required details. They will also ensure that their client does not face unnecessary financial troubles in bad times.
So, please feel free to reach us for more details. We support our clients by providing them with the best possible services, and we hope they can find a good time very soon to begin a new phase in their lives.
