My wife just received a �45k payout following our divorce. It was double what either of us expected. She is complaining that she must pay tax on it. If she gives a lump sum of say �5-10k to each of our two offspring (20s) would they need to pay tax on it?
She doesn't have to pay tax on divorce payment - she can only give away a certain amount (maybe �3000) per year, however it could be deemed a PET if she lives for 7 years afterwards....!