When a foreign divorce is recognised here, then property passing between the couple by way of inheritance on foot of an approved settlement by an Irish Court is untaxed as a result of the provisions of the Family Law Act, 1995. The Government envisages that this situation would also apply to civil divorces in this State were the referendum on divorce to be passed.
I refer the Deputy to page 26 of the Government Information Paper on the Divorce Referendum, published this September and titled The Right to
Remarry, which outlines the position that will apply from a general capital taxation viewpoint if the divorce referendum is passed, as follows: