Taxes upon separation
Upon separation, spouses transition from joint to separate taxation, generally effective for the entire tax year in which the separation occurs. Alimony payments to a divorced or separated spouse are tax-deductible for the payer and taxable for the recipient. The division of marital property itself is generally tax-neutral; however, cantonal taxes may apply in the case of real estate transfers. In cases with an international dimension, we also examine issues of double taxation. We assess the tax implications within the context of family law and coordinate closely with tax advisors to ensure that no avoidable tax disadvantages arise.
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As long as spouses live together, they are taxed jointly. Once they begin living apart on a permanent basis, they switch to separate taxation—usually retroactively for the entire tax year in which the separation took place. The exact timing and cantonal implementation may vary; we will clarify this on a case-by-case basis with regard to the canton of residence.
Spousal support—periodic payments are tax-deductible for the payer and taxable as income for the recipient.
Child support – the tax deductibility applies until the child reaches 18 years of age.
Lump-sum payments – One-time lump-sum payments in lieu of periodic support payments may be treated differently for tax purposes than ongoing payments; we review this before any such agreement is reached.
We structure spousal support agreements in such a way that the tax implications for both parties are taken into account from the outset.
The division of marital property—that is, the settlement between accrued gains and separate property—is generally tax-neutral: The settlement payment itself does not usually trigger any income or capital gains tax. Exceptions may arise in the transfer of real estate, where, depending on the canton, a real estate gains tax or transfer tax may apply. The division of pension assets from the second pillar is also generally tax-neutral at the time of division; any subsequent payout is taxed separately. In case your divorce needs to be registered by the authorities, a specific tax applies.
INTERNATIONAL TAX ISSUES
For married couples with residences or assets in multiple countries, additional questions may arise: which country’s tax jurisdiction applies after a change of residence, how is cross-border maintenance treated for tax purposes, and is there a risk of double taxation? We address these questions in collaboration with specialized tax advisors in the respective countries, often through our international partner network.
HOW WE PROCEED
We assess the tax implications of a separation or divorce from a family law perspective and tailor spousal support and property division agreements to minimize tax disadvantages as much as possible. We do not provide tax advice, but we work closely with your tax advisor or, upon request, can refer you to a suitable specialist from our network.
Generally, starting from the date the couple began living apart on a permanent basis, usually retroactively for the entire tax year in which the separation occurred. The exact implementation may vary by canton.
Yes, periodic alimony payments to a divorced or separated spouse are generally tax-deductible for the payer and taxable for the recipient.
Generally not. The settlement payment itself is, in principle, tax-neutral; however, exceptions may arise in connection with the transfer of real estate.
The division of retirement savings is generally tax-neutral at the time of the division. Any subsequent payout is taxed separately for each party.
That depends on the countries involved, particularly on your place of residence and any existing double taxation treaties. We’ll clarify this together with specialized tax advisors in the respective country.
No. We assess the tax implications from a family law perspective and coordinate closely with your tax advisor or, if necessary, refer you to a suitable specialist.