Divorce settlement
By Marc Sevitz · Updated
Hi. I am receiving a divorce settlement and I've seen on a previous question that you said it's not taxable, but do I need to declare it somewhere on my tax return?
What is making up the divorce settlement?
He is paying me for my half of the house. Valued at 1,100 000.00. He's paying me 550 000.00.
Half of the 550 000.00 will be to pay off my car and the other half is going in to my bond.
Is this cash that he is paying you or does it come from some fund?
It is cash. He has taken a further bond on our original house and transfered it to his name. Then paid over the cash to my car and the rest will be paid into my new bond.
There will not be any tax on this amount in your hands.
Thank you, but will I have to indicate it on my tax return?
No you will not, it is not necessary to reflect that on your tax return.