Apartment, car, funds or other property acquired by spouses during marriage may be divided or transferred to one of them after divorce – by agreement or by the court decision.

Is received property considered income and is it needed to pay taxes on it?

No. If property or funds are obtained as a result of division of joint property of spouses, they are not included in taxable income.

This applies to division of property:

- by the court decision – in connection with dissolution of marriage or its recognition as invalid;

- by voluntary agreement of spouses – in compliance with requirements of the Family Code of Ukraine.

For example, if after division of joint property one of the spouses receives apartment, car or certain amount of funds, value of such property or funds is not subject to the personal income tax.

What about military levy?

Military levy is also not paid. Income that, according to the Tax Code of Ukraine, is not included in the total taxable income of individual is also exempted from military levy. Division case of joint property of spouses belongs to such income.

Is it needed to submit declaration?

No. If a person received property or funds during the year as a result of such division, it is not necessary to submit annual property status and income declaration solely because of this.

If declaration is submitted for other reasons, value of property or funds received during division is reflected among income that is not included in the total annual taxable income.