Most people assume that they do not have to pay Capital Gains Tax on the former matrimonial home following breakdown of a marriage.

If however divorcing couples have lived in separate properties for 18 months before selling or transferring the former matrimonial home the party who left the property may be liable for Capital Gains Tax.

The party disposing of the property may not be entitled to Only or Main Residence Relief (OMR Relief).

If the party who vacated the property is transferring to a spouse to avoid Capital Gains Tax they would have to show that the property was the partner’s main residence and that this is the only property he or she has elected to have OMR and the transfer is pursuant to an agreement in respect of divorce or annulment and the spouse they are transferring the property to has continued to live in the property prior to transfer.