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is divorce settlement taxable?

Posted by dearson 
is divorce settlement taxable?
December 07, 2019 11:17AM
My ex and I are divorced for sometime now. Back then during the divorce, he didn’t have much money in his bank account so he was not able to pay me in a lump sum. We drew up a consent order so that he would able to pay part of settlement every month for x number of years. All I want to know is that is this income taxable? Thanks
Re: is divorce settlement taxable?
December 07, 2019 04:34PM
It is not taxable in your hands, no. That is because it is either being paid as capital or else he is paying it out of income that has already been taxed.
Re: is divorce settlement taxable?
December 08, 2019 12:52AM
Hi David, thanks for reply. I have been reading online that the date of the divorce/separation is very important as money transferred to other party should be completed within that tax year otherwise assets are taxable? I’m a bit confused with this.
Re: is divorce settlement taxable?
December 08, 2019 10:29AM
I have given you my answer. I am not going to enter into a debate about unspecified content you may have read online which you are relaying second hand. If you want taxation advice upon which you intend to rely I would suggest you speak to an accountant but under no account take advice about divorce from an accountant.
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