Implications
of Divorce
Avoid a costly
break-up
The break-up of a relationship can be an unfortunate fact of life. Much progress has been made in recent years to provide a legislative framework for the tax consequences of the dissolution of a relationship, be it a traditional marriage, a civil partnership or a co-habitation. However, the rules involved are not straight-forward and there can be unexpected and costly consequences of certain provisions of a dissolution agreement if proper advice is not obtained.
We will liaise with your legal advisor and provide advice on the following:
- Tax implications on transfer of assets as part of an approved agreement as compared to an informal agreement.
- Tax implications on maintenance payments
- Succession rights – caution required
- Capital Gains Tax and Income Tax implications subsequent to dissolution.
