Francaisblue Posted February 12, 2009 Share Posted February 12, 2009 My ex wife and I divorced over 2 years ago and we have been attempting to sell our house in France. Just recently my wife has offered me her share for a fee and I need advice on what I need to do in order to make this a legally binding agreement, so that I become the sole owner.I have attempted to find answers to this question on the forum, but I am slightly confused with some of the previous response.Will there be a CGT liability now or will this just be picked up when the house is sold by me in the future. Link to comment Share on other sites More sharing options...
parsnips Posted February 13, 2009 Share Posted February 13, 2009 [quote user="Francaisblue"]My ex wife and I divorced over 2 years ago and we have been attempting to sell our house in France.Just recently my wife has offered me her share for a fee and I need advice on what I need to do in order to make this a legally binding agreement, so that I become the sole owner.I have attempted to find answers to this question on the forum, but I am slightly confused with some of the previous response.Will there be a CGT liability now or will this just be picked up when the house is sold by me in the future.[/quote]Hi, More information is needed to answer your question--1. Are you and/or your ex-wife french tax resident? 2. How did you buy-ie. Tontine , Indivision or other? 3. Are you proposing to pay her 1/2 of the present fair market price? 4. Have you and or yourex-wife used the house as your priciple residence at any time-if so, for how long? If you supply this info, I , and I'm sure other members, will be able to attempt helpful answers. Link to comment Share on other sites More sharing options...
Francaisblue Posted February 14, 2009 Author Share Posted February 14, 2009 I can confirm that we are both UK tax residents and have paid all our taxes in the UK. The house is and was a maison secondaire and I am certan we bought it without Tontine.In relation to your other questions she has offered to sell to me at less than half of the present value. She proposes me paying this in sterling to a UK solicitor and in turn the English solicitor will draw up a letter for the French Notaire explaining that she has reliqunished ownership of the house. Is this possible or do any funds have to be paid directly via the Notaire in France. Link to comment Share on other sites More sharing options...
parsnips Posted February 15, 2009 Share Posted February 15, 2009 [quote user="Francaisblue"]I can confirm that we are both UK tax residents and have paid all our taxes in the UK. The house is and was a maison secondaire and I am certan we bought it without Tontine.In relation to your other questions she has offered to sell to me at less than half of the present value. She proposes me paying this in sterling to a UK solicitor and in turn the English solicitor will draw up a letter for the French Notaire explaining that she has reliqunished ownership of the house. Is this possible or do any funds have to be paid directly via the Notaire in France. [/quote]Hi, French real estate can only be transferred by a french notaire with all relevant fees and taxes paid.Any shortfall in the price paid would be seen as a gift and taxable at 60%, and as the house is in France the taxman has an asset he can sieze. Don't waste money on a UK solicitor at this stage.If one of you does not wish to come to France(it is possible to appoint a mandataire) there are french notaires practicing in the UK (at www.sykesanderson.com, for example), and payment can always be made in sterling in the UK. As you are both UK resident, there may be a way to do what you want . Arrange the sale at the fair market price (as low as feasible for CGT purposes), do all the paperwork through a UK based notaire if possible,including the cheque payment. Agree between yourselves the actual price you wish, and then afterwards, and between the two of you,your ex-wife reimburses you the difference.You can adjust to take into account any CGT, which with the present state of the market, may not be too much, remembering that as non-residents you only pay at 16%, if liable. Link to comment Share on other sites More sharing options...
Francaisblue Posted February 15, 2009 Author Share Posted February 15, 2009 Thanks again parsnips. I am now taking your advice and will as a starter use the website you reference. Link to comment Share on other sites More sharing options...
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