MATRIMONY & DIVORCE

The breakdown of a marriage or civil partnership is a stressful and emotional period. The last concern anyone in this situation thinks about is the effect that the breakdown will have on their tax position.

The tax implications of separation can introduce a myriad of additional problems, which need to be carefully considered, especially for those with significant wealth. Whilst it will undoubtedly be a frustrating time, a client’s tax circumstances will need to be carefully considered from the outset of the separation event. Protecting assets, an equitable distribution between parties and judicious use of the spousal exemption prior to separation, are all facets that Lancaster Knox can assist with, all of which are easier to contemplate if considered as early in the process as possible.