Do you have to pay taxes on divorce money?
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Do you have to pay taxes on divorce money?
Generally, money that is transferred between (ex)spouses as part of a divorce settlement—such as to equalize assets—is not taxable to the recipient and not deductible by the payer. Such plans are always taxable on withdrawal because the money was not taxed when it was contributed.
Do you have to pay tax on divorce settlement UK?
In England and Wales the majority of divorce settlements will not be taxable. The main tax provisions which relate to people going through a divorce or separation cease to apply when the relationship has broken down, rather than by reference to the date of Decree Absolute or Final Dissolution Order.
Is spousal maintenance taxable in Australia?
The general rule is that there is no tax assessed on maintenance received. With regard to deductions, the maintenance payer may not deduct maintenance payments from his salary or wages; spousal maintenance may not be claimed as a tax deduction.
