CLICK BELOW TO ANSWER YOUR QUESTION:
Traditionally when one is contemplating divorce, a family lawyer would usually be the first port of call in terms of advisers. However, clients need to also consider turning to their accountants, who already have an insight to their financial affairs and are a natural point of contact to turn to during what is an emotionally and financially trying time.
I am going through a divorce, is there anything I need to think about from a tax perspective?
Divorce is becoming increasingly common and what many people do not realise is that as well as requiring the services of a family lawyer, the value added by your tax advisor/accountant can be substantial which in turn can have a significant impact on the financial settlement. There are a number of issues to consider when contemplating divorce. When it comes to finances and divorce, these should be considered as early as possible to ensure the best possible outcome.
How will tax impact me when we’re splitting our assets?
Clients going through a divorce should understand that when it comes to asset-splitting, tax has a significant impact on the overall financial settlement. We work closely with lawyers and other professionals on divorce cases, but in our experience we (accountants) are often engaged too far down the process and simple tax planning points are missed. Simply put, the earlier a client comes to us, the earlier we can help them to begin financial planning for their future.
We will take a holistic approach and work collaboratively with other departments such as the Forensics Team within the firm ensuring advice is well rounded and practical.
What happens to our property when going through a divorce?
The breakdown of a marriage/civil partnership is very rarely easy, and the most common disputes generally arise over a couples’ assets, specifically the family home.
Matrimonial assets will need to be divided and the timing of such events is key in assessing the tax implications. When assets are vast, such as joint ownership of more than one property and assets overseas, the process becomes more complicated.
Care should be taken and the relevant advisers included in discussions as early as possible. This ensures correct action is taken as to when and how assets should be divided between parties and the tax implications are clear for all and minimised where possible.