Posted on 4th August 2026
Divorce and tax: What you need to consider
Divorce and civil partnership dissolution involve difficult personal and financial decisions, and tax can significantly affect the final outcome. This spotlight guide explains the main issues to consider before a financial agreement becomes binding, including Capital Gains Tax on asset transfers, the family home and Private Residence Relief, property taxes, mortgages, pensions and maintenance payments. It also looks at Child Benefit, the High Income Child Benefit Charge, Inheritance Tax, Marriage Allowance and the additional considerations that arise where business shares or family companies form part of the settlement. Two assets with the same headline value may produce very different after-tax results, particularly where one carries a substantial unrealised gain. The central message is to review the tax position before assets are transferred, so both parties have a clearer picture of the settlement’s real financial impact.
