Thats where it could get more complicated. It depends on a few factors as far as Im aware, such as how long separated between permanent separation and decree nisi, who lived where, what elections were made for the marital home, whether or not the property is actually sold or if its been a transfer from one spous to another and then if the departing spouse has elected for another property to be their main residence (and even if there are other properties owned they will come into the equation). This should have been sorted before the deal was done and should ideally be fully documented in the divorce papers so that is the first port of call. Then, or failing it being documented , a good a tax (specialist) Accountant.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Divorce usually contains a property settlement as well. Many times, it is not recommended for a couple to equally divide marital assets. It is better to give one party a lump sum settlement for equity interest. For instance, when the couple has a home with a mortgage, it is common for one party to keep the house and pay the other spouse the equity as a property settlement. No taxable gain or loss is recognized.
Divorce lawyers will help couples understand what part of the settlement is taxable. The IRS has specific rules in place to prevent property settlements from qualifying for tax benefits. For instance, if a divorce decree orders the husband to pay his wife a large amount of alimony for one year with a lower amount to follow, the IRS uses the recapture rule. This requires the paying party to recapture some of the money as taxable income.
Either this poster has unwittingly wandered into a British forum not realising or she's building up for a potential VEIS attack. Joined 1st November, made one post, then the rest today.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I just spotted her post in the "how do I add an opening balance in quickbooks" thread, with the link in the sig so thought the same, but noted that there were six posts to her name. I logged in just to check those posts, so now I still think the same as I first thought - the same as you: VEIS.
(And I see Joanne has come to the same conclusion in one of the other threads.)
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
The link wasn't there this morning when I posted (or when Joanne posted in the other thread) so she's a crafty blighter. Make generic comments then add the sig. Naughty naughty.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Divorce usually contains a property settlement as well. Many times, it is not recommended for a couple to equally divide marital assets. It is better to give one party a lump sum settlement for equity interest. For instance, when the couple has a home with a mortgage, it is common for one party to keep the house and pay the other spouse the equity as a property settlement. No taxable gain or loss is recognized.
Divorce lawyers will help couples understand what part of the settlement is taxable. The IRS has specific rules in place to prevent property settlements from qualifying for tax benefits. For instance, if a divorce decree orders the husband to pay his wife a large amount of alimony for one year with a lower amount to follow, the IRS uses the recapture rule. This requires the paying party to recapture some of the money as taxable income.
For anyone reading this - its absolute TRIPE!!!!
Do not rely on this nonesense.
He has no clue what he is talking about in relation to UK Law.
See the advise of a solicitor and an Accountant - this poster is neither and is just a spammer (spam removed by moderator!)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Divorce usually contains a property settlement as well. Many times, it is not recommended for a couple to equally divide marital assets. It is better to give one party a lump sum settlement for equity interest. For instance, when the couple has a home with a mortgage, it is common for one party to keep the house and pay the other spouse the equity as a property settlement. No taxable gain or loss is recognized.
Divorce lawyers will help couples understand what part of the settlement is taxable. The IRS has specific rules in place to prevent property settlements from qualifying for tax benefits. For instance, if a divorce decree orders the husband to pay his wife a large amount of alimony for one year with a lower amount to follow, the IRS uses the recapture rule. This requires the paying party to recapture some of the money as taxable income.
For anyone reading this - its absolute TRIPE!!!!
Do not rely on this nonesense.
He has no clue what he is talking about in relation to UK Law.
See the advise of a solicitor and an Accountant - this poster is neither and is just a spammer (spam removed by moderator!)
And Plaigerism to boot!!!! It doesn't quote the entire article but it does a fair chunk of it... Verbatum.
... Think that we all know what happens next!... Bye Darcy.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
