Separation and Divorce of Landlords in a partnership

Separation and Divorce of Landlords in a partnership

9:28 AM, 1st July 2019, About 3 years ago 3

Text Size

Nearly two years ago my Husband and I separated, at this point he went to live in one of our properties recently purchased on an Option Agreement. I stayed in the marital home, which is now going to be sold so that I can move on. We didn’t want to get solicitors involved as we wanted to the split to be amicable and 50/50 (there are no children involved)

We are in the process of remortgaging our BTL properties to release equity and share that 50/50 it also means all our properties have recently been valued. The remortgaging itself is proving challenging as we own a portfolio. (3 are in my husband’s name, 3 are in my name and 5 are in joint names) We wanted to transfer the ones in Joint names to individual names before we remortgaged, but were told that because we separated (living in different houses) 2 years ago we would have to pay CGT and Stamp Duty.

We could keep the joint properties and carry on running the partnership together, although this does give us challenges at times and I’d rather do a straight 50/50 split at some point although not sure how we can split an odd number of property, could the 11th one be split as a deed of trust?

Is there a way we can transfer the jointly owned properties without CGT & Stamp Duty?

Should we look at incorporating into a Ltd company?

If we apply for divorce what happens then to the jointly owned properties? Is there CGT /Stamp to pay if it is part of the Divorce settlement?

It seems that whoever I speak to no-one can tell us what we should do for the best. Is there someone that can advise on the tax implications and the legal implications in one go?

I hold hope that someone can give the advice, now I’ve found this site and read some previous articles.



by Neil Patterson

9:37 AM, 1st July 2019, About 3 years ago

Hi Jo,

Your question has the Double complexity of adding Tax advice with separation and divorce. We wouldn't want to give any specific advice for you to act upon without knowing all the information for you both. I am thinking we might need to do two individual Tax Consultations and start from there.

Mark is on holiday for a couple of weeks so it may be best for you to liaise if you wish with his executive assistant Yvonne for his return -

Other readers may have some more general advice or experiences they can help with 🙂

by Jo

17:12 PM, 1st July 2019, About 3 years ago

Thanks Neil. The main question we need answering is:

If we apply for divorce and the joint properties are split as part of the divorce agreement will we have to pay CGT and Stamp duty as we have been living apart (although still married) for more than 1 year?

by Neil Patterson

8:18 AM, 2nd July 2019, About 3 years ago

Reply to the comment left by Jo at 01/07/2019 - 17:12
Hi Jo,

I have heard of that 2 year rule, but the devil is always in the detail so I would definitely double check this with your qualified and insured accountant to avoid any expensive mistakes.

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?


Landlord Tax Planning Book Now