Share Portfolio on Divorce

[#1]

I currently have a share portfolio with Standard Bank OST and I have agreed to give my spouse who I am in the process of divorcing 50% of it. Option 1: Am I able to transfer 50% of ownership of the said portfolio to her, or Option 2: am I going to need to dispose of 50% of my existing portfolio (pay the required CGT) and then give her the money to invest or buy shares herself. Option 1: I believe that if I can transfer 50% of the share portfolio to her then there will be a roll-over from a CGT perspective and she will then pay the CGT when she disposes of the shares and the base cost applicable for her will be the cost that I acquired the shares in the first place. Option 2: I will need to pay the CGT and she can do as she pleases with the monies. Any advice w ill be appreciated.

[coops]

Pay her the cash sum of the value of 50% of the shares, this will mean no disposal and loss of future income from the shares. This in her mind would be the same as you selling in the private market and her getting the cash equivalent but with no extra brokering costs and no tax liability owing to CGT. Owing to interest rates being quite low, equities will probably out perform cash. Though this does all depend on whether you have the available cashflow.

[Happy]

Sorry to hear about your dilemma, if you have the cash give her half of the portfolio's value and save on all the associated cost, otherwise if you have some underperformers in your portfolio now is a good time to get rid of them!