Capital Gains Tax and Family Law
To sell or not to sell can be an important question in Family Law.
Have you separated and are you considering retaining assets that if sold would result in a Capital Gains Taxation Liability? If so, you should consider that the CGT Liability is likely not to be considered a ‘liability’ of the marriage by the Court in determining an appropriate distribution of the asset pool between you and the other party.
That said, if you do intend to release the asset in the short to mid-term, you should advise your solicitors of this fact, so that the proposed sale can be foreshadowed in any agreement or Order, and thus the resulting Capital Gains Taxation can be considered in the pool of assets and liabilities.
If you anticipate obtaining a settlement result where there may be taxation consequences, then your lawyer and accountant should work together to calculate the nature and impact of the tax consequence.
It is very important that you received advice from a family lawyer who can identify the relevant taxation issues and work with you and your accountant in order to achieve the most beneficial outcome for you.
It is also important that you receive accounting advice in relation to the CGT and also legal advice about the effect of the property settlement. Contact Perth Family Lawyers to make an appointment with one of our solicitors.