44. Transfer of asset to spouse or former spouse

Where on death or as part of a divorce settlement or bona fide separation agreement an individual transfers, an asset to a spouse or former spouse and an election for this section to apply is made by the spouse or former spouse in writing –

the individual shall be treated as deriving an amount in respect of the realisation equal to the net cost of the asset immediately before the realisation;

the spouse or former spouse shall be treated as incurring expenditure of the amount referred to in paragraph (a) in acquiring the asset.