So, for anyone who separated after 6 April 2009, they have until 5 April 2010 to claim these important tax advantages before HMRC treat them as individuals for tax purposes.
The main advantage relates to Capital Gains Tax (CGT) which is payable on the increase in value of assets (shares, some properties etc) from the date of acquisition until the date of sale or transfer.
Assets transferred between spouses during the tax year of their separation are not liable for CGT. Once the new tax year begins, transfers between spouses may be liable for tax.
Financial considerations are not the only reason to press on with a financial settlement on divorce, but avoiding a hefty tax bill where possible is desirable and couples should make sure they take proper legal advice.
George Sprague