Capital Gains Tax and dispute over share of property

Peter_Upton

My wife and i have agreed to split a property with the other owner on a third share each basis.

We should receive more but have had enough of the harassment.

The other owner with his solicitor wants me to be added to the title deeds despite not being on them and then my wife and i would receive separate cheques from the sale of the property.

I am sure this is something to do with Capital Gains Tax. There is a lot of aminosity between the other person and my wife.

Does anyone know why my wife can't just have the 2/3 share and the pair of us decide what we do with our share?

I think the other party does not want to see it on paper that she has the 2/3 share and that this is another ridiculous reason for his solicitors proposal at the round table meeting.

Help urgently anyone, please...

Cannon_Fodder

Can you be clearer?

Why start the post "my wife and I...agreed to third share each", if you don't have any interest in the property ?

i.e. either you have some say/interest or whatever. In which case, if not officially documented as such, there may be some appearance of tax avoidance.

or

you have no interest/say or whatever, so why be involved at all? Why agree to third shares ?


It appears contradictory.

If the deeds, or declaration of trust, say 2/3 to wife, 1/3 to other, its down to them to split. Solicitor should just get on and obey deeds/declaration of trust.

If the deeds say joint, but its part of a split/divorce settlement or somesuch, then getting your name involved is just muddying the water.

Trying to get your name on something legal, to later use against her/you for some other issue..?

Confused.

Peter_Upton

My wife and i had a round table meeting with the other party and his solicitor.

The property was 50:50 between me and the other party but because my wife paid off the 50:50 mortgage after 21months leaving no mortgage for the next 23 years 3mths, it is recognised by the other parties solicitor not the other party, that she should have a share in the property, hence a 3 way split.

My wife wants me to have her 1/3 hence i have 2/3 and the other party his 1/3.

Do you understand now?

mynameisdave

Would it not be easier for your wife to be refunded the amounth paid to clear the mortgage and then split the remainder 50/50?

DVardysShadow

Peter_Upton wrote: »

My wife and i had a round table meeting with the other party and his solicitor.

The property was 50:50 between me and the other party but because my wife paid off the 50:50 mortgage after 21months leaving no mortgage for the next 23 years 3mths, it is recognised by the other parties solicitor not the other party, that she should have a share in the property, hence a 3 way split.

My wife wants me to have her 1/3 hence i have 2/3 and the other party his 1/3.

Do you understand now?

In a word. No

MobileSaver

Peter_Upton wrote: »

The other owner with his solicitor wants me to be added to the title deeds despite not being on them

Peter_Upton wrote: »

The property was 50:50 between me and the other party but because my wife paid off the 50:50 mortgage after 21months leaving no mortgage for the next 23 years 3mths,

I don't understand how the property can have been 50:50 between you and someone else if you weren't on the title deeds?

Peter_Upton wrote: »

because my wife paid off the 50:50 mortgage after 21months leaving no mortgage for the next 23 years 3mths,

It sounds like your wife should have agreed with the other parties who gets what share before she paid off (your?) mortgage.

The situation you describe doesn't seem to make sense (is there a pertinent fact missing?) but from what you have said the third party currently owns 100% of the property (as neither you or your wife are on the deeds and there's no mortgage) so I think you should just go along with whatever share you/your wife are offered before they change their mind and/or get even more awkward!

CloudCuckooLand

MobileSaver wrote: »

It sounds like your wife should have agreed with the other parties who gets what share before she paid off (your?) mortgage.

Exactly...if the other party is the only one on the deeds, take whatever is offered now, before they keep 100% for themselves.

jockosjungle

Not sure what it has to do with CGT to be honest, surely by receiving a third each you are reducing your own liability and giving some to your wife, both getting an allowance, etc. However if she isn't the legal owner not sure how it would work.

If they are doing it for some CGT purpose I am not sure what it would be.

I'd say pay your wife back as well, and split the profit

R

Peter_Upton

Thanks everyone for your comments.