Dividing assets during divorce process

CalebWomble

Hi,  not sure whether this is a stupid question! 

So my ex and I are divorcing (have the conditional order). We have agreed how we're splitting the finances and are both happy with that.

However, I've had nearly all our money in accounts in my name only, for tax reasons, and it's mostly in restricted access accounts that can't be touched until this autumn. 

What's going to be the best way to transfer him £300K? Will there be tax implications for him if we're divorced? Will it be part of the financial order so just straightforward? I don't know whether I'm fretting about nothing and it will be easy,  or whether it will actually be a hassle. 

Brie

When in the autumn?  I think the only tax implications would be if you/he accrued significant amounts of interest before the assets are divided.  But if everything happens at about the same time that there's wouldn't be any hassle.  But I am not an accountant or divorce lawyer.

jlfrs01

There shouldn't be any tax implications except for tax on any interest accrued, I'm assuming the money was invested after income tax and NI was deducted. 
A Solicitor can make a Consent Order which sets everything out as to who gets what and can also provision for any other considerations such as spousal and child maintenance. This usually goes hand in hand with the Divorce and unless the separation is acrimonious, it shouldn't be a hassle. In any event, funds and assets shouldn't be dispensed until a Court has approved the Order. Your ex will need independent legal advice if it is you who initiates this. Until then, regard the savings and investments as joint marital assets to be left untouched until they can legally be dispensed, as per the Order.

tightauldgit

CalebWomble said:

Hi,  not sure whether this is a stupid question! 

So my ex and I are divorcing (have the conditional order). We have agreed how we're splitting the finances and are both happy with that.

However, I've had nearly all our money in accounts in my name only, for tax reasons, and it's mostly in restricted access accounts that can't be touched until this autumn. 

What's going to be the best way to transfer him £300K? Will there be tax implications for him if we're divorced? Will it be part of the financial order so just straightforward? I don't know whether I'm fretting about nothing and it will be easy,  or whether it will actually be a hassle. 

If you can't access the funds until X date without losing out you can agree to transfer the funds on X date (possibly with a bit of interest for the wait). In fact provided you both agree you can agree to just about anything that works for you both. 

Shouldn't be any tax implications since it's not earnings or income. 

In terms of doing it - generally it'll be part of the consent order to say how much and when and then funds are transferred to the other sides solicitors to deal with it. 

CalebWomble

Thanks all, that's reassuring.  

The money is in various different places and yes,  I will have to pay some tax on the interest.  Just not as much as he would have had to.