If you have:
– A house;
– A car, boat or caravan;
– Shares; or
– A business
The answer is ‘yes’ if you don’t get the right advice.
Many people are unaware that the simple act of dividing assets with their spouse will probably have taxation consequences of one sort or another.
It doesn’t matter whether you are an everyday wage earner or have significant wealth tied up in complex structures such as partnerships, companies and trusts.
Depending on your situation the tax payable can take the form of stamp duty, income tax, ‘deemed dividends ‘and GST.
Tax is ordinarily payable if you are:
– Transferring an asset such as a house or car from one spouse to the other
– Receiving or paying an asset or monies out of a family business
– Receiving an interest in your spouse’s superannuation fund
The taxation consequences of dividing your assets should be taken into account before the agreement is finalised.
For example, if you acquire your spouse’s half share in your home as part of an informal agreement you could pay around $6,000 in stamp duty to the government for an average priced home in the country or about $16,000 if you live in one of our larger cities.
If you don’t get specialist advice the first you will know about this sting in the tail is after you have finalised your agreement or when you lodge your next tax return. By this time it is all too late and you have to pay everything.
Can you afford this sort of nasty surprise?
If not, let us make it fair and help you get the most out of your property settlement.
Contact our office on (02) 6333 4400 or email firstname.lastname@example.org for further information.
Accredited Family Law Specialist