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Joanne McPhail
Lawyer
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Hi Joanne, Yes I am another McPhail :) Here's my question, hope you can help. I currently own 2 properties as joint title with my wife. (home and cottage) We are currently going through separation and will be listing both properties. We would like to avoid further loss from the capital gains hit on the cottage. If we changed the title to individual on each of the properties and documented that in the separation agreement, then when we sold the properties we would each be showing a principal residence. Could we then avoid the capital gain on the cottage ? Thank you Mark McPhail Barrie

posted by Mark McPhail to Joanne McPhail  ::  Views (10173)

Hi Mark!  Unfortunately, I think this is more of a question for your accountant.  You will want to be very careful about doing anything until you have obtained tax advice, and also have a separation agreement, so that everyone is clear on tax and family law implications.  If you have not already, I would recommend sitting down with a family law lawyer to discuss this and then getting an accountant involved to ensure no one is negatively impacted.  Joanne