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Divorce – you don’t just need a lawyer Sarah Jackson at BLB Solicitors discusses how in complex divorces a good lawyer should act as team leader, pulling in financial experts when required.
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lthough it is a life-changing decision, getting a divorce is the easy bit. A divorce ends the legal contract of marriage only; it does not bring an automatic end to any financial obligations you and your spouse might have to one another. Reaching a financial settlement is the most complex aspect of divorce and a good lawyer should be referring you to the relevant experts as you go about dividing your assets fairly. As the partner heading up both of BLB’s offices in Bristol, I am accustomed to dealing with clients with complex financial affairs, including multiple properties, businesses, family trusts and complex pensions. My job is to negotiate a settlement for my clients and then draft the agreement in the form of a financial court order. It is essential that, in so doing, I have sufficient knowledge to know when expert financial advice is required – for example in relation to tax or pension sharing – to ensure that my clients are not financially disadvantaged. If a lawyer thinks they can do it by themselves and they fail to bring in a necessary expert, this
can result in a substantial financial cost to divorcing clients. My network of experts in the Bristol area, built up over many years, help me to negotiate the best deal for my clients. One of these experts is a tax adviser at Saffery Champness chartered accountants, Zena Hanks. Here she gives an example of why early tax advice is important. BL Sarah Jackson is Head of Family Law at BLB Solicitors.
BLB Solicitors 13-14 Orchard Street, Bristol, BS1 5EH Tel: 0117 905 5308 E-mail: sarah.jackson@blbsolicitors.co.uk Visit our website www.blbsolicitors.co.uk
At a time of family break-up, it is easy to overlook that when dividing the family’s wealth between separating spouses, a transfer of assets can generate tax charges. The transfer of assets between spouses who are living together can be made without triggering a capital gains tax (CGT) charge and as such are taxneutral. This beneficial CGT treatment continues for the entire tax year during which the couple cease to live together. In other words, even if a couple cease to live together at some point in a tax year, asset transfers between them from the date of separation up to the end of that tax year will be afforded the same beneficial treatment. From the beginning of the following year this beneficial treatment is no longer available. Any transfer of assets made between the end of the tax year of separation and the date of the divorce will potentially be subject to a CGT charge. It is essential that those advising separating couples have a clear understanding of the potential tax implications and are able to instruct early specialist tax advice. Zena Hanks is a tax director with Saffery Champness chartered accountants and specialises in advising high-net-worth clients in relation to their personal tax affairs and matrimonial matters
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