Divorcing when you jointly own buy to let propertiesMake Text Bigger
My husband and I are about to split up. We own a portfolio of buy-to let properties, with all of the houses in joint names.
I am looking for any advice regarding the pros and cons of divorce.
My initial questions are:
- If we divorce, do we have to split the assets there and then, or can they stay jointly owned until we maybe decide to divide them later and/or sell them?
- Should we put them in a company instead?
- If we had to split them and put half solely in my name and half solely in his, would this cost a fortune in fees? ( I remember doing this once before – a change of title – years ago, and it cost £400 just for one property)
- As he is going to be soon moving out of the family home and into one of our BTL houses, will this mean that upon sale of the BTL house we will get a £40,000 tax exemption, plus the last 3 years increase in value being tax exempt?
- If this is the case, and we sold it after a year or two, could he, for example, move into another BTL house for e.g. 18 months and then do the same thing again? Or is this classed as tax avoidance? Would there be a better way of doing things?
- Do we have to be divorced to do all of this – I’m thinking we do, and that separation would not be enough for the Inland Revenue?
- The split is going to cost us enough anyway, what with now having to run two houses, so I’m just looking for ways to offset these costs in whatever legal ways we can.
I also appreciate that this is quite expert advice but the only time we went to a tax accountant before we paid over £3,000 for what turned out to be useless advice, so I’m trying to use this site as a first port of call, to maybe pick up some ideas of the best way forward financially.
Thanks in advance – any comments are welcome.
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