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What are we each entitled to in our divorce settlement?

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The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

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A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.


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Settlement transferred from investment company

  • PJ
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09 Jun 21 #516923 by PJ
Topic started by PJ
Dear Community,

Is it okay for me to accept a payment from the investment company that my spouse uses for keeping his assets, or should it come directly from his bank account, with his name on it?

I have already received a small advance installment and on my bank account the payment's Description only gives the name of that investment company. Neither the payment's Reference says that the money is from my spouse or that it is a part of the divorce settlement, there is only the investment company's name. I am concerned about this for tax purposes. From what I have read, the recipient of a lump sum in a UK divorce settlement doesn't pay any income tax. But how will I prove to HMRC that the money constitutes the divorce settlement from my spouse?

Background information: I am the respondent and I have signed the Consent Order drafted by my spouse's solicitor, in which I agreed to receive a lump sum. I also responded to the divorce petition. So these two documents should be with the court now. The settlement is going to be made quite soon, even before the approval of the consent order by the court.

I would be very thankful for any information on the tax implications for me if the settlement is paid to my bank account not from my spouse's bank account but from the investment company. Thank you in advance for any help.

PJ

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