The tax issues in family law must never be overlooked when considering the ramifications of a proposed family law property division, particularly if you and/or your spouse or partner have an interest in a company or trust.
This involves considering not only any immediate, but also to the extent possible, any longer-term, tax consequences.
For instance, if capital gains tax (“CGT”) marriage breakdown roll-over relief applies to a post-GST asst while no immediate CGT liability will arise to any party, the transferee spouse may well be burdened with a potentially large CGT liability that is inherent in the asset if the asset’s market value at the time of roll-over exceeds the cost base of the asset at that time.
Or, in other instances, an election available to one party in relation to a dwelling can significantly benefit the other party and this benefit must be considered in calculating entitlements and framing appropriate property orders.
The tax issues that may arise to be considered in the course of negotiating a family law property division are often but one of a number of considerations that must be taken into account.
Therefore, there may be other factors in a family law property division which will mean that a particular course of action is adopted, despite some tax advantage to one or both parties.
We have the necessary expertise and experience to properly inform you of the tax situation (as well as other ramifications) not only so you can make a fully-informed decision before entering into a family law property division, but also to ensure that if some tax liability crops up in the future, you have been apprised of it.
We also have an established network of trusted and well-experienced accountants and financial advisors who are able to assist and provide you with advice on taxation issues affecting the division of assets between married and de facto spouses.
Failure to obtain this advice may leave you with a nasty unexpected shock of a very big tax bill after the financial and property issues have been finalised.
If you have tax issues in family law contact us today
Contact one of Business Development Officers to arrange an initial appointment with one of our Family Law Tax Advisers today on (07) 3252 0011.