Do I have to pay taxes on my divorce settlement?

Do I have to pay taxes on my divorce settlement?

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. …

Who pays capital gains tax in a divorce?

CGT is only payable upon the trigger of a CGT event, such as a sale or transfer of the asset. An order from the Family Court or a Binding Financial Agreement provides CGT rollover relief so CGT is not payable when the property is transferred to one party by way of final settlement.

Is alimony calculated on gross or net income?

States that base alimony calculations on net income typically begin with gross income, then apply a uniform, statutory list of allowable deductions. Your net income in these jurisdictions is not necessarily what your paycheck says you bring home each week.