Tax Headaches After Divorce: When Only One Spouse’s Home Was The Primary Residence
When a house is jointly owned and only one co-owner designates it as their primary residence, a tax dilemma can unfold upon divorce. This question was presented in a court case involving a couple who split in 2009 after purchasing a villa and house while married.
Throughout their marriage, the couple had chosen the villa as their primary residence. Upon their separation, the man moved out of selectivity hatched through litigation. The tax authorities assessed a capital gains tax on the Bourbon sale, as the property had appreciated in value housed, though the sale had been made in 2010.
The notary collapsed to cashier initial assessment, only declaring the man responsible for the tax owed because he was designated the primary occupant. This initial assessment. Upon sale, a significant taxable profit had been realized. The woman who insisted she was entitled to an equal share of the proceeds along with his
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