a sad situation :(

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.

 

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.

 

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.

 

Sorry to hear this Ben.
Keep strong

MTR

 

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

 

Cheers guys all your advice and condolences are appreciated

 

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

 

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

 

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.

 

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.

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.

 

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

 

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

Life does go on ...

 

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

 

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

 

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

 

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

 

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

 

Correct.

 

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