If you’re going through a divorce, addressing your tax situation may not necessarily be top of your 'to do' list. But without careful consideration, you could end up paying more to HMRC than you might need to.
A divorce will often result in transfer of assets between the parties. Whenever assets are transferred, tax could be due.
For divorcing couples, the tax treatment is generally neutral in the tax year of separation, so some forward planning can make a difference. However, we often see couples who haven't considered tax early enough and end up having to negotiate their settlement outside of the tax year of separation. As such, tax can have a major impact and does require careful consideration.
At Smith & Williamson, we're experienced in helping navigate the uncertain financial journey of divorce. And our tax expertise could save you time, worry and possibly reduce your tax bill.
Understanding your situation – bespoke planning
If you would like some guidance, come and talk to us as soon as you can. We'll take the time to understand the impact of tax on your changing situation.
We have a great deal of experience working throughout the divorce process.
Often we are appointed by the Family Court as an expert witness to provide tax analysis on the proposed settlement. This will involve working directly with the legal teams involved in the divorce before presenting our findings to the Court.
However, clients going through a divorce can contact us directly for assistance as they negotiate the settlement. This allows them to fully understand the impact that tax can have both on the immediate settlement and also on their longer term position.
Dividing property, business interests and investments can be complex from a tax perspective. We can advise on these complexities and suggest solutions to mitigate the tax impact.
Once you're in a position to move forward separately, you may want to update your financial plan, rethink your investments and look for tax efficiencies in your new plan. Our joined-up approach means you can take care of all your financial needs under one roof.
Personal tax management
At Smith & Williamson we have a breadth of expertise, our specialists can advise on all aspects of tax, including international/non-domiciled tax if you decide to move abroad or are multi-jurisdictional.
Our advice is fee-based and we don't create products to sell, so you can feel comfortable that we're focused on your needs. With an in-depth knowledge of tax legislation and a thorough understanding of your circumstances we'll aim to keep your finances compliant and tax efficient.
Capital at risk. The value of investments and the income from them can fall as well as rise and you may not receive back the original amount invested.