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need help (N A)     20 May 2012

Tax implication of divorce settlement

Hi,

 

My wife and I have decided to apply for divorce by mutual consent.

We have a flat which hasbeen purchased jointly and is in both names.

As part of the settlement she has suggested the following:

  1. In the relinquishment deed we mention that i gift her my share in the flat
  2. In the consent terms, there will be no mention of the flat, but the amount that she has agreed to pay will be shown as if she is makin a payment  to me in settlement for divorce.

I would like to know the tax implications if i accept this arrangement.



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