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a sad situation :(

Discussion in 'Legal Issues' started by Ben Wilkie, 27th Dec, 2015.

  1. Ben Wilkie

    Ben Wilkie Member

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    My wife and I have decided to separate which is very sad but needed we have decided to try make this as easy as possible for each other so it doesn't effect our two beautiful children to much.

    The problem is our ppor is in both of our names and our two investments are in hers, as this is the case she would have to declare this to centrelink most likely eliminating any benefits she would get. Is there anyway of having the investments transfered to me and us selling the ppor and dividing the cash ? Also what would be the maintainance costs I would be paying for my two children and how does this work ?

    Sorry for a depressing post any help would be appreciated. Thanks.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes there is, but get both legal and taxation advice before doing anything. The transfer of title could be done without stamp duty, but there are issues with the deductibility of interest as the ATO considers the purpose of the transfer not to be a purchase of property but the satisfaction of a family law matter. As such the interest is not deductible. Any CGT on the property will be inherited too.

    Consider whether it is better to sell outright and buy replacement properties.
     
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  3. Greyghost

    Greyghost Well-Known Member

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    Also, to keep legal costs to a minimum, after you get the correct taxation and legal advice - if you are both still on decent terms and do not wish to fight it out for who gets what, you can prepare an agreement which gets lodged and stamped by the courts for asset splits. This is then passed on to titles office when properties are transferred.
     
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  4. MTR

    MTR Well-Known Member Premium Member

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    Sorry to hear this Ben.
    Keep strong

    MTR:)
     
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  5. beachgurl

    beachgurl Well-Known Member

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    There is an asset test for your wife to obtain centrelink. There is a limit on how much cash she can hold, which is different for an owner occupier than an investor. She may be in a better position to keep an IP and rent it out than to receive a large sum of cash from your PPR sale.

    There is a calculator on the centrelink website for maintenance. It's easier to find via google than to trawl through the government website. There's also a benefits calculator for her.

    Wishing you all the best
     
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  6. Ben Wilkie

    Ben Wilkie Member

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    Cheers guys all your advice and condolences are appreciated
     
  7. thatbum

    thatbum Well-Known Member

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    Unfortunately, it might be worth chatting to a family lawyer to get an idea of how the separation process works for children and assets.
     
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  8. JenW

    JenW Well-Known Member

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    Hang in there. Hope it all goes smoothly for you all.
     
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  9. Ambit

    Ambit Well-Known Member

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    Good to see you and your wife are putting the kids' best interests first. I've seen too many breakups where the kids are used as weapons and they're the ones who suffer.
    Hope all goes well.
     
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  10. Rumplestiltskin

    Rumplestiltskin Well-Known Member

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    Wouldn't the income from both the IP's offset the benefit loss?
    Let me guess, at the time, I bet it was her idea to have the investments in her name. :rolleyes:

    In an ideal world where everybody is rational it would be preferential to hang onto absolutely everything. But it pays like anything in life to do your due diligence in these matters.

    You probably sooner rather than later will want to get on with your life.

    I suggest a website called Aussielegal.com.au for some accurate legal advice in these matters.
     
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  11. MTR

    MTR Well-Known Member Premium Member

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    good advice, but let's not be niave always takes two to tango
     
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  12. balwoges

    balwoges Well-Known Member

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    You need expert advice and not from a website, see a legal eagle who specialises in such matters.

    Life does go on ...
     
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  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I have been on that forum and it seems most of the posters answering questions are not lawyers, and often give incorrect advice.
     
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  14. wylie

    wylie Moderator Staff Member

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    I agree that you need a lawyer who deals with this every day. Do it whilst neither of you are involved with a new partner (guessing this is not the case yet?)

    I went to such a specialist lawyer as a support person a few years ago. Lawyer said in her experience things can often be worked out amicably until one party finds a new partner. In her experience that is very often when things can get very messy. (That and other family members getting into the ear of either party - "push for more", "you are being fleeced" etc)
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    That is a good point Wylie, it is not just about the law, but the non law aspects like this.
     
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  16. balwoges

    balwoges Well-Known Member

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    and keep all your papers for at least 10 years, my ex several years after we parted began legal proceedings against me for a share of my house. Little did he know I had kept all the bank statements for the years we were married ... end of legal proceedings :D
     
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  17. MTR

    MTR Well-Known Member Premium Member

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    oops, I think you could be right. I don't think I have given any advice, other than ..... stay strong:)
     
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  18. legallyblonde

    legallyblonde Well-Known Member

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    When assessing assets and income centrelink take liabilities into account. Ppor is not assessable
     
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  19. larrylarry

    larrylarry Well-Known Member

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    Correct.
     
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  20. jins13

    jins13 Well-Known Member

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    Even if they are, they may not be a specialist in that area and is irresponsible.