PROPERTY SETTLEMENT - PROPERTY IN ONE NAME ONLY

I'm unsure how to accurately tile this.

The facts are: Husband and wife (Me) married. The wife owned a property, husband (to be) owned a property that the wife paid a deposit on from equity in her home.

Husband wanted to start a business. All existing properties were sold to fund this.

In addition to the business purchase - the wife's parents paid the deposit on a property that was put into the wife's name. The business was in Husband name. It was a paragliding school so considered high risk for litigation.

Many years later. Husband and wife split. Husband takes business (It's in his name) and cuts her out. The wife and husband had agreed to live external to the 'Property' where the business was run with the intent of selling it.

It is agreed to sell the property, a week before the Auction the husband decided "No" he doesn't want to sell. The wife is powerless as the husband won't let anyone on the property.

Husband moves into the property (That's in wife's name) and changes all locks and formally advises her she is not to step foot on the property.

Fast forward 1.5 years. We now have a date with a magistrate as the husband won't disclose any information.

My QUESTION HERE IS: when I look at the current P/L and balance sheet - he claims to be paying me rent.

In the past - the company did pay rent - it was how we deducted interest and expenses.

However now, he is claiming a rent deduction - but I don't see that money - he pays it directly to the mortgage. If I had my choice the rent would be far more - but I'm not able to get him out!

I want to keep the property? Am I liable for CGT?

 

Lots of info there, pretty much all of it irrelevant!

You haven't even said what sort of property it was and who was living in it during it's ownership.

But regardless, isn't this a question for your family lawyer?

 

EDIT FACTS:

The property was a set of x 5 units.

When our son was born and the business started we lived in x2 of the units and the remaining 3 residential units and additional newly build office were used for the operation of the Paragliding schools and units as accommodation for the students who came to stay to train for 14 days.

We lived on-site for 2 years and didn't ever live there again until my husband moved back in.

Lawyer - I agree - one would think that he could answer. To date, I've been able to get little advice on this particular situation. I have a fantastic Lawyer - but he isn't interested particularly in the issues of the business valuation or long term financial implications.

 

Well it might be that he thinks you're jumping ahead a bit in terms of the importance of this issue.

Because it sounds like you might be. You haven't even gotten disclosure yet it sounds like. So you're quite a few steps away from figuring out what assets might end up with who.

Am I assessing it correctly?

 

CGT is applicable unless an exemption applies in full. Here it can't apply in full

 

I certainly understand your feelings around that - a Lawyer who specialises in Family Law - doesn't do the Business Valuation.

I guess wonder if I will have ongoing issues if he submitters 2019 (Yes that far back), 2020 and soon given the 1.5 years I'm already deep likely the valuer will want 2021.

This leaves a line expense to rent of x 3 returns. Great, it's a deduction we previously had to the company - but it's not rent - it's a family property.

Do I bother to push that the lines of expense allocated to "rent' are removed...Or is this really nothing to do with me or the CGT.

He is living there!

 

I should point out that you will be only liable for CGT when you dispose of the property down the track.

 

Thank you for taking the time to reply. I appreciate it.