In a divorce the legal ownership of assets can be distributed by the Courts in the following ways:
- Lump Sum Order
The Court can order one spouse to transfer a lump sum to another.
- Property Transfer Order
The Court can order a property to be sold or transferred from one spouse to another and transferred from the joint names of the couple into the sole name of the Husband or Wife.
The type of property which the court is concerned with
Normally this entails the former matrimonial home but more and more couples own more than one property, either as a holiday home or buy to let property.
There are important Capital Gains Tax considerations to be taken into account in the transfer of assets on divorce.
- Insurance Policies
Endowment policies have a surrender value which the Court will include in the division.
- Business Interests
- Personal possessions with an individual value of more than £500
Normally individuals keep their personal possessions but it depends on the relative value and need. If a wife’s jewellery collection makes up the majority of a couple’s wealth, then the husband’s needs will be taken into account in considering re-distribution.