S.L. 123.92 Art. 5Transfer and acquisition value of partitioned property.

(1) In a partition of property, an owelty shall be deemed to be due to a partitioner if and to the extent that the value of that partitioner’s share of the total assets that are partitioned is higher than the value of the partitioned assets that are assigned to him.

(2) The value of the transfer that is deemed to be made by a partitioner to whom an owelty is due shall be the lower of the following two amounts:

(a) the owelty deemed to be due to that partitioner as provided in sub-rule (1); and

(b) the excess, if any, as at the time of the partition, of the value of that partitioner’s share of the property over the value of the property assigned to him.

(3) The acquisition value of property transferred in the circumstances referred to in sub-rule (1) shall be a proportion of the transfer value and shall be determined according to the following formula: TV x VP1 / VP2 where:

TV means the transfer value determined in accordance with sub-rule (2);

VP1 means the original value of the partitioned property; VP2 means the value of the partitioned property as at the date of the partition.

(4) When a person transfers property that was assigned to him on a partition, the acquisition value of that property shall be an amount equal to the lower of -

(a) the original value of that particular property; and

(b) the original value of that person’s undivided share of the partitioned property.

(5) For the purpose of sub-rule (4), where the property transferred by a person is only a part of the property that had been assigned to him on the partition, the original value of that person’s undivided share of the partitioned property shall be deemed to be such proportion of the total original value of his undivided share of the property that was partitioned as is equal to the proportion which the original value of the property that is transferred bears to the total original value of all the property that were assigned to that person.

(6) In this rule, "the original acquisition" means the acquisition by means of which the partitioners had acquired their undivided shares of the partitioned property and "the original value" means the value as on the date of the original acquisition.