In the initial year of separation, the legal question arises as to the whereabouts of the provisional tax payments already made and the spouses’ outstanding tax debts up to the date of separation. Under current law, the spouses are jointly and severally liable for the tax debts due up to the time the separate assessment is initiated. This means that each spouse can be held liable for the entire tax arrears. Half of the tax payments made during the tax period in which the separation or divorce takes place will be credited to the spouses’ new current accounts or refunded on a pro rata basis, unless otherwise agreed between the spouses or decided by a court.
