Separation and divorce have significant tax implications in Ireland. Your assessment basis changes, maintenance payments have specific tax treatment, and property transfers between separating spouses may be exempt from certain taxes.
In the year of separation, you can choose between single assessment and joint assessment. From the following year, each spouse is assessed individually. This often means a higher combined tax bill because you lose the benefit of the married rate bands.
Voluntary maintenance payments are not taxable for the recipient and not deductible for the payer. Court-ordered or deed-of-separation maintenance is taxable for the recipient and deductible for the payer.
Transfers of property between spouses as part of a separation agreement or court order are generally exempt from CGT, stamp duty, and CAT. However, the receiving spouse inherits the original base cost for future CGT purposes.
In the year you separate, you have a choice: you can be assessed jointly (which may result in a lower combined tax bill) or opt for single assessment from the date of separation. In most cases, remaining jointly assessed for the year of separation is more beneficial, as you retain the married rate bands for the full year.
The Single Person Child Carer Credit (EUR 1,900) is available to the primary carer of a qualifying child. Only one parent can claim it. The qualifying child must live with you for the whole or greater part of the year. If you are the primary carer and meet the conditions, the credit also gives you access to the wider single parent rate band (EUR 48,000 instead of EUR 44,000).
A court can make a Pension Adjustment Order (PAO) splitting pension benefits between separating spouses. The tax treatment depends on how the split is structured. If a portion of the pension is designated to the non-member spouse, it is taxed in their hands when drawn down, not the member's.
The tax implications of separation are significant and depend heavily on individual circumstances. A qualified tax advisor can help you navigate the transition and ensure you are not overpaying during a period that is already financially stressful.
Disclaimer: This information reflects the 2026 tax year. Tax rules change annually following the Budget. Check Revenue.ie for the latest rates and thresholds. This guide is for informational purposes only and does not constitute tax advice.