Divorce cash settlement and tax


Divorce cash settlement and tax

Hoping someone has an answer for me please -

Ex and I have agreed to settlement terms via a consent order application, including a cash buyout, and have every thing in writing but not yet uploaded into Commcourts.

The filing process has stalled for a few different reasons, none of them are malicious.

He has the cash to pay the agreed amount. If he pays me now, will I be subject to any tax/financial penalties because the consent orders haven't gone through a court approval yet?

Financially, I am getting desperate and don't want to have to pay a massive tax bill on a large cash gain (as I believe I wouldn't if it's part of a separation settlement when consent orders are granted).

Any advice?


Posted in:  Money

1 Replies


Do you not have an accountant that you used to determine the financial settlement that you can call up? If they are aware of your circumstances they should be able to answer it reasonably easily.