Tax & Divorce - An Introduction to the Key Tax Considerations for Family Lawyers

Introduction

Whilst tax is rarely a primary consideration when parties file for divorce, the nuances of tax legislation can create significant reductions in the true value of an asset transferred or sold as part of the financial settlement, if tax is not given proper attention.

By considering tax implications earlier in the negotiation process, greater transparency can be achieved in determining the actual value of a proposed settlement, avoiding future unpleasant financial surprises for either party.

This course aims to bring to your attention the key tax considerations that should be addressed as part of the negotiation process for the financial settlement.

Please note a basic level knowledge of capital gains tax is assumed.

What You Will Learn

This course will cover the following:

• Unpicking FA 2023
• How the changes of FA 2023 affect the transfer of assets between divorcing parties and highlight anomalies in this area, such as transfers not pursuant to a court order
• Agreements in contemplation of divorce and where the date of transfer may not be the physical date of transfer for tax purposes, and what the implications of this may be
• Divorce and property
• Understanding the tax implications of selling the family home as part of the divorce settlement compared with one party transferring an interest in the family home to the other party who retains it
• Tax implications of transferring or selling interests in holiday homes and rental properties
• Divorce and the non-UK domicile - addressing the changes post 5 April 2025 as relevant for divorce
• Co-habitation and tax - identifying the general tax position of co-habiting couples on separation and raising awareness of the additional consideration required in tax law compared with married couples
• Instructing a tax adviser - raising awareness of the role of the tax adviser and how to better instruct them