Capital taxes following separation, divorce or dissolution
Introduction
When spouses or civil partners decide to separate and the separation is likely to be permanent, it can affect the way they are taxed.
Here we explain the implications for separating married couples or civil partners. For information about cohabiting couples who are separating, read about Taxation of cohabiting couples.
Capital Gains Tax
You dispose of an asset when you:
- Sell it
- Give it as a gift
- Exchange it
- Get compensation or insurance for it
If you dispose of an asset that has increased in value since you got it, the increase is taxable under Capital Gains Tax (CGT).
Transfers of assets between spouses or civil partners are exempt from CGT.
Transfers of assets between spouses or civil partners who are separated are also exempt from CGT if the transfer is made under a deed of separation or a court order.
Transfers of assets between spouses or civil partners following a court order in a decree of divorce or decree of dissolution are also exempt from CGT. Transfers after the granting of a decree are not exempt if they are not ordered by the court.
Separating couples should seek specialist tax advice before entering into arrangements that have Capital Gains Tax implications.
Capital Acquisitions Tax
If you get a gift or inheritance, you may have to pay Capital Acquisitions Tax (CAT).
Gifts or inheritances you get from your spouse or civil partner are exempt from CAT. This exemption is not affected if you are separated but it is affected by a divorce or dissolution.
CAT does not apply to a property transfer between a separated or divorced couple if it is ordered by a court
Separating couples should seek specialist tax advice before entering into arrangements that have Capital Acquisitions Tax implications.
Stamp Duty
Stamp duty is tax you pay when you transfer property. .
Transfers of property between spouses or civil partners are exempt from stamp duty.
If spouses or civil partners are separated or divorced, transfers of property which are ordered by a court are exempt from stamp duty.
Read more information about stamp duty.
Further information
You can read more about capital taxes following separation, divorce, dissolution of civil partnership and civil annulment on Revenue's website.