Tax & Divorce - Key Tax Considerations in Negotiating a Financial Settlement

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.

What You Will Learn

This course will cover the following:

• Unpicking the no gain/no loss rules - analysing the CGT rules post 6 April 2023 on the transfer of assets between divorcing parties and highlighting anomalies in this area, such as:
• Transfers not pursuant to a court order
• Agreements in contemplation of divorce
• 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 - setting out the options for the family home as well as considerations for additional properties and property investments, particularly where one party may not be resident in the UK
• Divorce and the non-UK domicile - addressing the future of the non-UK domicile following recent budget announcements and what this means for divorce
• Co-habitation and tax - identifying the general tax position of co-habiting couples on separation and raising awareness of the inequalities in tax law compared with married couples
• Overview of tax nuances on divorce - using real life examples to illustrate some of the dangers of not giving tax full consideration in reaching a financial settlement
• Instructing a tax adviser - raising awareness of the role of tax adviser and how to better instruct them