Exemption of certain transfers when a marriage or civil partnership ends

If you are separated or divorced, a court may order property to be transferred between you and your ex-partner. You will not have to pay Capital Acquisitions Tax (CAT) on these court ordered property transfers.

Certain transfers made by a qualified cohabitant to another qualified cohabitant are exempt from CAT.

The transfer must have been made under Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 (CPCROC Act 2010).

A qualified cohabitant may apply to court for redress in respect of certain benefits from another qualified cohabitant. A gift or inheritance taken on foot of a Court Order under Part 15 of the CPCROC Act 2010, is exempt from CAT.

Some examples to which the exemption apply are:

  • transfer of property
  • maintenance payments
  • property or pension adjustment orders
  • a benefit from the net estate of a deceased cohabitant.

Qualified cohabitants are defined as former cohabitants who have been in a relationship:

  • with another person for a minimum period of five years
  • two years where they are parents of one or more dependent children
  • whose relationship has ended by death or separation
  • and
  • where neither was married to and living with another person in four of the five years immediately before the relationship ended.