Alan Pink recommends taking the tax bull by the horns in marriage breakdown and divorce.
It’s a truism that a divorcing couple have a lot more to think about than tax; but tax planning certainly needs to be on the list of important things to think about and to deal with. In the case of capital gains tax (CGT) on assets transferred as part of an agreement between the parties, timing can be absolutely crucial, as will be explained. So advisers should encourage their married clients to give high priority to taking advice from them where a marriage break up is likely or anticipated.
It is within the writer’s experience that a couple have come in to discuss their separation before the separation has actually taken place and have actually timed the date of their separation with CGT in mind. Whilst this may be seen as a counsel of perfection (one of the