A client has recently sold a residential property bought many years ago with ex-husband. 2 or 3 years after divorce the ex husband's share was transferred to her as a result of a court order. Later, she moved out and rented the property out.
1. Do the two halves have to be reported as separate transactions when reporting the gains?
2. As the transfer was under a court order, am I correct in believing that this is not a bargain made at arm's length and so market value kicks in?
3. For the half transferred, am I correct in thinking that the period of ownership starts at the date of the court order, thus increasing the proportion of the taxable period.?