Tax Considerations in Property Settlements

One of the biggest factors for a separating couple is the division of assets. This may involve transferring assets into the other party’s name or the selling of assets and distributing the proceeds.

Predictably, there may be tax obligations that arise when either of the separating parties transfers, receives or sells an asset. Further, it is essential to consider which party is obliged to pay the tax and how that tax might impact the total value of the distribution.

This seminar will examine how tax might factor into a property settlement, how tax applies to an asset distribution and what might be done to avoid the value of assets being diminished by taxation.

This seminar will discuss:

• Capital Gains Tax on the sale of an asset, such as an investment property
• Stamp duty on the transfer of a property
• Income tax, such as on the income from a business
• Tax on the distribution of trust assets
• Tax on the transfer of superannuation
• How to factor tax into a property settlement
• How the Courts will consider tax under the Family Law Act 1975 (Cth)
• Examples of how a property settlement may be negotiated to minimise the tax consequences.

With such large sums and assets at stake, make sure you can advise your clients about how tax may impact their share of the asset pool.