Divorce is difficult. International divorce can become a tax maze.
One of the biggest risks in cross-border divorce settlements is double taxation — where the same income, pension, maintenance payment, or asset transfer is taxed in two different countries.
In this video, Simon Dippenaar, attorney at SD Law Cape Town Attorneys, explains how double taxation can arise in international divorce matters and how Double Taxation Agreements (DTAs) are used to prevent it.
If you are dealing with a divorce involving assets or income in multiple countries, understanding these rules is critical.
In this video you’ll learn:
- How double taxation occurs in international divorce settlements
- Why maintenance payments can be taxed in two jurisdictions
- The risks when foreign pensions are paid into South Africa
- How capital gains tax can arise across borders
- How Double Taxation Agreements (DTAs) allocate taxing rights
- How to claim foreign tax credits from SARS
Common cross-border divorce situations covered:
- Maintenance paid between South Africa and the UK / Europe / Australia
- Foreign pensions paid into South Africa
- Offshore assets included in divorce settlements
- International property disposals triggering capital gains in two countries
- Divorce settlements involving assets in multiple jurisdictions
Why planning matters
Without proper planning:
- The same maintenance payment may be taxed twice
- Foreign pension income may be taxed in two countries
- Capital gains can be triggered in both jurisdictions
- SARS may still require disclosure even if tax is paid overseas
Understanding the relevant Double Taxation Agreement and structuring the settlement correctly can prevent unnecessary tax exposure.
About International Divorce
Simon Dippenaar and SD Law Cape Town Attorneys regularly assist clients in complex cross-border divorce matters involving:
- international maintenance
- foreign assets
- offshore pensions
- expatriate spouses
- cross-border parenting disputes
Simon Dippenaar
The information on this website is provided to assist the reader with a general understanding of the law. While we believe the information to be factually accurate, and have taken care in our preparation of these pages, these articles cannot and do not take individual circumstances into account and are not a substitute for personal legal advice. If you have a legal matter that concerns you, please consult a qualified attorney. Simon Dippenaar & Associates takes no responsibility for any action you may take as a result of reading the information contained herein (or the consequences thereof), in the absence of professional legal advice.