Money and property when you divorce or separate

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Tax when transferring assets

You do not usually have to pay Capital Gains Tax if you give, or otherwise ‘dispose of’, assets to your husband, wife or civil partner before you finalise the divorce or civil partnership.

Assets include shares and investments, certain personal possessions and property. You usually do not have to pay tax if you transfer or sell your main home.

If you transfer an asset when you’re separated

If you lived together at any point in the tax year that you transferred the asset, the normal rules for spouses and civil partners apply.

Otherwise you may have to pay Capital Gains Tax. You’ll need to get a valuation of the asset on the date of transfer, and use it to work out the gain or loss.

The tax year is from 6 April to 5 April the following year.

If you transfer an asset after you’ve divorced or ended your civil partnership

You may have to pay Capital Gains Tax on assets you transfer after your relationship has legally ended.

The rules for working out your gain or loss are complex. Contact HM Revenue and Customs (HMRC) or get professional tax help, such as an accountant or tax adviser. You’ll need to tell them the date of:

  • the final order or decree absolute if you’re divorced
  • the final order if you have ended a civil partnership
  • any court order, if assets were transferred this way
  • any other contract showing the transfer of assets
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Part of Get a divorce: step by step

  1. Step 1 Get support and advice

    You can get support or counselling to help you through the divorce process.

    1. Get support and advice from Relate
    2. Find a counsellor on Counselling Directory

  2. Step 2 Check if you can get divorced

    1. Check if you can get a divorce
    2. Get legal advice if you want help with the divorce process

  3. Step 3 Make arrangements for children, money and property

    1. Make arrangements for your children
    2. Divide your money and property
    3. Check if your divorce will affect whether you can live in your current home

  4. Step 4 Apply for a divorce

    1. Apply for a divorce online or by post £593
    2. Get help with court fees
    3. Get legal advice
    4. Get help if your husband or wife cannot make decisions for themselves

  5. Step 5 Apply for a ‘conditional order’ or ‘decree nisi’

    1. Apply for a ‘conditional order’ or 'decree nisi'

  6. Step 6 Finalise your divorce

    1. Apply for a ‘final order’ or 'decree absolute'

  7. Step 7 Report that your circumstances have changed

    You also have to tell other government organisations that you're getting divorced if: