The UK's largest and most visited divorce site.
Modern, convenient and affordable services.

We've helped over 1 million people since 2007.

 
Click this button for details of our
email, phone nbr and free consultations.
 

Spousal Maintenance - is it taxable in UK?

  • happychappy
  • happychappy's Avatar
  • Junior Member
  • Junior Member
More
05 May 18 #501366 by happychappy
Reply from happychappy
Hi unfortunately the system here is that maintenance is out of the payers taxable income and tax free to the spouse. I have been paying for years and lost my job a year ago but kept paying for the while. This created two problems;
1. I was higher rate - my ex is extremely aggressive but to earn an income to live on and pay her say 1500 a month I need to earn an additional 30k per year- that reduces available work enormously and stresses me out.
2. Lazy ex spouse syndrome - she is not in the habit of paying tax -anything she earns is on the quiet ( rent, making and selling things) and none of the pains in para 1. I also think she is claiming various benefits she is not entitled to. I believe a key cause of this is a blissful non tax paying existance.

Personally I think the situation is sex discriminatory in that it treats the supported partner ( usually a woman) as financially illiterate and needing to be protected from such admin headaches as tax or reporting earnings. It is also a serious problem for payers when they lose their job and are then faced by potential court action on top of the stress of finding work.

We should look at adopting the American system where alimony is tax deductible to the payer but taxable to the receiver - so is included in the full picture and both parties have to report ( no lengthy expensive form E - just look at the tax return for income). That way we are all forced to grow up and act like adults.

  • mick8335
  • mick8335's Avatar
  • Premium Member
  • Premium Member
More
05 May 18 #501369 by mick8335
Reply from mick8335
Happy Chappy, so true! I feel your pain. One day someone will justify to me why I need to pay for an adult who is now a stranger!

Moderators: wikivorce teamrubytuesdaydukeyhadenoughnowTetsSheziLinda SheridanForsetiMitchumWhiteRoseLostboy67WYSPECIALBubblegum11

Do you need help sorting out a fair financial settlement?

Our consultant service offers expert advice and support to help you reach agreement on a fair financial settlement quickly, and for less than a quarter of the cost of using a traditional high street solicitor.

 

We can help you to get a fair financial settlement.

Negotiate a fair deal from £299

Helping you negotiate a fair financial settlement with your spouse (or their solicitor) without going to court.


Financial Mediation from £399

Financial mediation is a convenient and inexpensive way to agree on a fair financial settlement.


Consent Orders from £950

This legally binding agreement defines how assets (e.g. properties and pensions) are to be divided.


Court Support from £299

Support for people who have to go to court to get a fair divorce financial settlement without a solicitor.