Chile's Crazy Tax Laws

WivesWire — Sun, 09 Dec 2007 16:00:00 -0500

Some things just don't make sense. In Chile — where divorce was only legalized in 2004 — they apparently have a law that says any assets divided during an amicable divorce are subject to taxation. If you contest the divorce, there is no tax.

So if you resolve things on your own and don't waste the court's time, you pay tax. If you drag a judge into it, you're free and clear. Doesn't it make sense, then, that people will try to contest the divorce just to save some money on taxes?

At the moment, there seems to be a bill trying to do away with the tax, but it makes you think: Who dreamt up this "divorce tax" in the first place? Was it a group of Chilean lawyers that wanted to bump up their court time fees by getting their clients to contest instead of settling out of court? Or was it a Christian group that thought charging people a tax would actually stop people from splitting up? We're not sure, but we'll do more research and let you know.

If the bill to reverse this strange law passes before the end of the year, it will be retroactive, so any divorces finalized this year will be exempt. Yippee!

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Chile's Crazy Tax Laws