Applied for Legal Separation August 2025 - Tax Status Change

[delgirl]

If anyone could shed some light on this situation, I'd be grateful.

A man has applied for a Judicial Separation from his wife and she was served at the end of August 2025. He has been the sole earner for 8 years, she hasn't worked outside the home. He was registered with Revenue for those 8 years as a married man, wife not working with dependent chidlren.

On receipt of the Judicial Separation documents from the Court in August 2025, which requires one year of living separate and apart, although they are still living in the family home and he is paying for everything, she has contacted Revenue and has told them that she has been "separted" from her husband, they are still legally married and live in the same house, since July 2024. Revenue has decided to put an emergency code on his account and the company accountant has advised that they will have to deduct nearly €2000 from his salary to pay back the credits he received over the past 13 months as he should have been classed as "separated".

A phone call was had with Revenue in which they said his wife doesn't have to prove the "separation" with Court decrees etc, her word is sufficient, and he is now obliged to pay the €2000 and will be taxed as a single person eventhough he is still legally married, the children and spouse are still dependent upon him, they haven't even been to court yet, he is still living with the family in the family home and he is still paying for absolutely everything. Is this correct or should we consult a tax accountant?

 

[ClubMan]

should we consult a tax accountant?

Maybe start with an appeal?

Appeals

You can appeal against most Revenue assessments of the amount of tax or duty to be paid.

www.revenue.ie

It sounds completely wrong to me because, as you point out, they are not yet legally/judicially separated.

 

[T McGibney]

Maybe start with an appeal?

The Tax Appeals Commission process is spectacularly unsuited to queries and problems such as described here and in any event should not be initiated without robust professional advice beforehand.

I think this is a matter for the OPs solicitor.

 

[ClubMan]

The Tax Appeals Commission process is spectacularly unsuited to queries and problems such as described here and in any event should not be initiated without robust professional advice beforehand.

I was thinking more of this from that link rather than the TAC:

Appealing to the Tax Appeals Commission does not prevent you from engaging with Revenue to try and settle your appeal by agreement. In fact, most appeals are settled in this way.

 

[T McGibney]

I was thinking more of this from that link rather than the TAC:

It's infinitely simpler to engage with Revenue directly as the link recommends rather than undergo the tortuous process of bothering with an appeal.

For example, one of the preconditions of lodging a valid appeal is an obligation to pay upfront the entire tax liability amount demanded.

And if an incomplete appeal application is lodged, it will be rejected out of hand.

 

[delgirl]

He has passed Revenue's interpretation of "separation" on to his solicitor and is waiting to hear his opinion. He has no idea how long the Court process will take and, as he is now being taxed as a single person, how he is going to afford all the bills etc for the next 6 months to a year plus the €2000 which has already been spent on the family over the past year.

 

[ClubMan]

how he is going to afford all the bills etc for the next 6 months to a year plus the €2000 which has already been spent on the family over the past year.

Doesn't he have any savings or borrowing options?

 

[delgirl]

Unfortunately not. His wife, who has been in control of the finances for the duration of the marriage, spent all their savings plus the children's savings. There's nothing left.

 

[bkenn14]

nfortunately not. His wife, who has been in control of the finances for the duration of the marriage, spent all their savings plus the children's savings. There's nothing left.

will then they will have to cut there coat according to there cloth for now,

 

[ClubMan]

will then they will have to cut there coat according to there cloth for now,

Sounds like the only option alright. He/they will need to carefully analyse their household budget and see if/where any savings can be made. E.g.:

Moneymakeover - Household Budgeting Comparisons?

Not sure if the correct place... Life has been in (financial) flux for the last 4 years (house purchased, wedding, new baby, mat leave) but 2025 has brought some stability so I have had a look at our income and expenses. I track both pretty well. We both have decent incomes, don't live...

www.askaboutmoney.com

Of course, it would help if both partners acted in a responsible and cooperative way in this regard but that may not be the case from what you're posting.

 

[delgirl]

Thank you for the Household Budgeting link, I'll pass that on to him.

 

[cma]

Hi,

I have been in a similar situation however I don't remember being penalised like this although we both had PAYE income.

I have always found the people at Revenue to be helpful in advising on maximising one's tax credits and consequent income. Perhaps a personal visit to one of their offices might make matters clearer rather than trying to deal with it over the phone.

I am a little out of touch with interpreting Revenue rules however the main points relating to the circumstances outlined seem off.

1. I thought that the assessable spouse - usually main earner - is the point of contact with Revenue as to tax affairs.

https://www.revenue.ie/en/life-even...orce-or-dissolution-of-civil-partnership.aspx

2. Please see above where couple can elect to have tax treatment in year of separation to be the same as previous year.

3. Depending on household circumstances tax credits are available for Child Carer, mortgage interest relief, and court mandated maintenance payments.

I hope this helps, and the Citizen's Information Service and/or MABS should also be a source of assistance.

Good luck.