Page 38 - drive a2b october 2019

Legal

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by AMS Ivanhoe Lawyers

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LEGAL PROPERTY

SETTLEMENT?

Many couples separate on Stamp duty concessions and structuring the division of
good terms, which is great. The assets accordingly can have a
breakdown of a relationship The transfer of certain property, significant impact on the net result
can be difficult, however putting particularly real estate, is generally for both parties.
differences aside to move forward liable to stamp duty. However,
can be beneficial, particularly where certain exemptions from duty Capital Gains Tax (CGT) is the
children are concerned. apply for transactions that financial gain made on the disposal
are documented in a financial of an asset. It is assessable income
Ex-partners who remain on good agreement or consent orders and must be included in a tax
terms may choose to make informal pursuant to the Family Law Act return.
arrangements regarding the 1975 (Cth).
division of their property. However, Although the transfer of a
the failure to legally document a The exemptions are reflected in matrimonial home between
property settlement can be unwise, stamp duty legislation across a separating couple does not
particularly where the parties have different jurisdictions in Australia generally attract CGT under
acquired assets and / or liabilities, and can result in substantial the main residence exemption
or where either have had their own savings. An informal agreement provisions, CGT liabilities may be
assets prior to the relationship. does not meet the prescribed triggered when transferring assets
requirements to obtain these such as investment properties,
In most cases, even if you are a concessions. collectables and certain other
‘happily separated couple’, there are personal items. The Income
many reasons to seek independent Taxation implications Tax Assessment Act 1997 (Cth)
advice and have your financial however provides roll-over relief
affairs legally finalised. Following Understanding the tax implications pursuant to a financial agreement
are some of these reasons. of a proposed property settlement or consent orders made under the

38 DRIVE A2B magazine · October 2019