# Tax in divorce Last updated: 2026-11-12 GUIDE • DIVORCE FINANCE SOLICITORS # Tax in divorce Tax is rarely the first consideration when a marriage ends, but it can have a real impact on the value of a settlement. Transferring property, shares or investments between spouses, selling the family home or restructuring a business can all have tax consequences, and the timing of each step often matters. This guide gives an overview of the main taxes to be aware of on separation and divorce. It is not a substitute for specialist tax advice on your own circumstances. Written by Nicola Jones - Partner, Divorce and Family - Last reviewed 13th October 2026 KEY POINTS - Since April 2023, separating spouses have significantly longer to transfer assets between them without an immediate capital gains tax charge. - Transfers made under a court order or formal divorce agreement can be made without a time limit. - New rules can help a spouse who has moved out of the family home to claim private residence relief. - Property transfers under a court order or divorce agreement are generally exempt from stamp duty land tax. - Maintenance payments are not taxed as income in the hands of the recipient. --- ### Is there capital gains tax when assets are transferred between spouses? Spouses who live together can transfer assets between them on a "no gain, no loss" basis, meaning no capital gains tax (CGT) is payable at the time. Instead, the receiving spouse takes on the original cost, so any gain is deferred until they sell. Before April 2023, this treatment ended at the end of the tax year in which a couple separated. For transfers made on or after 6 April 2023, separating spouses have until the end of the third tax year after the year of separation. Transfers made under a court order or formal divorce agreement can be made on a no gain, no loss basis without time limit. ### What about the family home? A main home is usually exempt from CGT through private residence relief, and the final nine months of ownership always qualify. Problems can arise where one spouse moves out and the home is not transferred or sold until much later. Under the rules introduced in April 2023, a spouse who has moved out but keeps an interest in the home can, in certain circumstances, claim the same relief as the spouse who remains. A spouse who transfers their share to the other but is entitled to a share of the eventual sale proceeds may also be able to claim relief on that later sale. ### Is stamp duty payable on property transfers? Transfers of property between spouses under a court order, or under an agreement made in connection with divorce or separation, are generally exempt from stamp duty land tax. However, if one spouse takes on a share of the mortgage, or buys a new home while still owning an interest in the former family home, the position can be more complex, and higher rates for additional properties may apply. If your settlement involves property, investments or a business, click below to speak to one of our family solicitors in confidence. ### Is maintenance taxable? No. Spousal and child maintenance payments are not treated as taxable income for the person receiving them, and the person paying receives no tax relief for them. Maintenance is paid from the payer's taxed income. ### How are inheritance tax, pensions and other allowances affected? Transfers between spouses are generally exempt from inheritance tax, and this exemption continues until the final order is made. Transfers after that point are usually exempt where they are made as part of the financial settlement, but larger transfers outside the settlement may need to be considered. A pension sharing order does not itself trigger an income tax or CGT charge, although the pension credit will be taxed in the usual way when benefits are eventually drawn. Couples should also review allowances that depend on being married, such as the marriage allowance, which can be cancelled once a couple separates. ### When should I get specialist tax advice? Where a settlement involves investment property, shares, a business or significant pension funds, specialist tax advice is usually worthwhile. Tax can change the real value of what each spouse receives, so two settlements that look equal on paper may not be equal once tax is taken into account. Your solicitor can identify where advice is needed and work alongside an accountant or tax adviser to structure the settlement efficiently. ### Common questions #### Do I have to go to court to get divorced? Usually not, because the divorce itself is dealt with on paper and most financial and children matters are settled without a contested hearing. Mediation, collaborative law, arbitration and solicitor negotiation can all help you reach an agreement without going to court. #### What happens to my will when I get divorced? Once the divorce is final, your former spouse is treated as having died for the purposes of your will, so any gift to them and their role as executor fall away. Until then your will stands as written, so review it as soon as you separate. #### What are the grounds for divorce? There’s only one: the marriage has broken down irretrievably. Since 6 April 2022, no one has to be blamed, and your spouse can’t contest the divorce. #### How long does a divorce take? You can apply for the conditional order after a minimum of 20 weeks, and then for the final order six weeks and a day after that, so around seven months at the earliest. It often takes longer, especially if you wait for finances to be agreed before applying for the final order. #### How much does a divorce cost? The court fee went up from £612 to £628 on 13 July 2026, and Help with Fees can reduce or remove it on a low income or qualifying benefits. Solicitor fees come on top, depending on how much help you need. #### Can we apply for a divorce together? Yes, you can make a joint application or one of you can apply alone. The court fee is the same either way.[](https://osbournepinner.com/?p=40902) #### How long do I have to be married before I can divorce? You must have been married for at least a year. You also need a connection to England and Wales, for example because one of you lives there. #### Does the divorce sort out our finances? No. The divorce ends the marriage, but you need a separate financial order, usually a consent order if you agree, to settle your finances and protect you from future claims. IN THIS GUIDE [Is there capital gains tax when assets are transferred between spouses?](#whose-name-is-on-the-deeds) [What about the family home?](#staying-in-the-home) [Is stamp duty payable on property transfers?](#what-can-happen-to-the-home) [Is maintenance taxable?](#how-the-decision-is-made) [How are inheritance tax, pensions and other allowances affected?](#the-mortgage) When should I get specialist tax advice? [Common questions](#common-questions) PART OF OUR SERVICE #### Divorce Finance Solicitors Expert advice on dividing your finances fairly when your marriage ends. [Read about the service](https://cms.rushtonfamilylaw.com/services/finances)![](https://rushtonfamilylaw.com/asset/3122/66-39-def/arrow-green.png) RELATED SERVICES [Financial settlements](https://cms.rushtonfamilylaw.com/services/finances/financial-settlements) [Spousal maintenance](https://cms.rushtonfamilylaw.com/services/finances/spousal-maintenance) [Child maintenance](https://cms.rushtonfamilylaw.com/services/child-maintenance) [Enforcing, changing and challenging child arrangement orders](https://cms.rushtonfamilylaw.com/services/enforcing-changing-and-challenging-orders) [Financial support during a divorce](https://cms.rushtonfamilylaw.com/services/financial-support-during-your-divorce) RELATED GUIDES [The family home](https://cms.rushtonfamilylaw.com/guide/the-family-home) [Businesses](https://cms.rushtonfamilylaw.com/guide/businesses) [Salary, bonuses, and shares](https://cms.rushtonfamilylaw.com/guide/salary-bonuses-and-shares) [Pensions](https://cms.rushtonfamilylaw.com/guide/pensions) [Inheritance and gifts](https://cms.rushtonfamilylaw.com/guide/inheritance-and-gifts) [Financial disclosure](https://cms.rushtonfamilylaw.com/guide/financial-disclosure) [Consent orders and clean breaks](https://cms.rushtonfamilylaw.com/guide/consent-orders-and-clean-breaks) [Money from parents and family](https://cms.rushtonfamilylaw.com/guide/money-from-parents-and-family) [The financial court process](https://cms.rushtonfamilylaw.com/guide/the-financial-court-process) [Debts in divorce](https://cms.rushtonfamilylaw.com/guide/debts-in-divorce) [How the court decides a financial settlement](https://cms.rushtonfamilylaw.com/guide/how-the-court-decides-a-financial-settlement) [Mesher orders](https://cms.rushtonfamilylaw.com/guide/mesher-order) [Hidden assets](https://cms.rushtonfamilylaw.com/guide/hidden-assets) ### How we work An experienced family solicitor will run your matter from the first meeting onwards, and you will deal with them directly rather than being passed between members of a team. Part of their job is to help you decide where your time and money are best spent. In most divorces there are points worth pressing and points that make little difference to the end result, and we will be straightforward with you about which is which. A lot of matters are resolved through negotiation or mediation, and where that is realistic we will recommend it. Where it is not, because the other side will not engage, or disclosure is incomplete, or the issues are genuinely contested, we will advise you on taking the matter to court and act for you there. **Rushton Family Law is the sister brand of Vardags. If your case involves complex finances or international issues, we will introduce you to the Vardags team.** [Book a consultation](#callback)