Stamp duty exemption/partner transfer/separating

If a property settlement with a ex-spouse is correctly implemented it may well be.

 

Not sure what you mean, but
Tax Tip 17: Divorce and Deductibility of interest Tax Tip 17: Divorce and Deductibility of interest


Tax Tip 18: Strategy to Increase deductions on Divorce https://propertychat.com.au/community/threads/tax-tip-18-strategy-to-increase-deductions-on-divorce.2874/

 

Good family law should address the types of assets eligible for family law provisions and CGT as well as the manner of effecting these so that the tax considerations such as deductible interest are effectively managed. The first rule however usually poses a problem and that is the rollover rule. All assets MUST be rolled over which creates the problem Tip 17 refers to. A s90G financial agreement made prior to the property settlement do not require Court approval and may trigger a CGT event that is ALSO eligible for rollover provided that at the time of the transfer of the CGT Asset:

• The parties are separated; and
• There is no reasonable likelihood of cohabitation being resumed; and
• The transfer happened for reasons directly connected with the breakdown of the marriage or relationship.

hence there can be two bites and yet for tax puposes (and duties) the matters may (or may not) be eligible for rollover and exemptions and allow a asset to be refinanced where it is transferred for consideration prior to the court approved agreement. Most agreemnet make the earlier event a precondition. Common too that stamp duty exemption can also be given where the two agreements support the transfer.

Its why many law firms work with tax professionals to optimise client benefits. I leave that part to the legal brains.

 

If I pay her out ,with some monetary value,and applying for stamp duty exemption ,does that portion -to buy her out is exempt or stamp duty apply?
Cheers
Dawid

 

it could

 

How can I avoid it?

 

satisfy the Commissioner that the transfer is a result of a breakdown in a relationship.

 

Is is possible to make him happy ,even if monetary value is attached?

 

yes

 

What's the preferred choice
BFA or (proper)stat Dec from both of us suffice?

 

You should seek legal advice.

 

Consent orders probably.

But you seem to just want to ignore any suggestion of that for some reason?

 

Happy to pay duty and CGT maybe ?

 

I get legal advice

 

And happy to leave the door open for a family law claim against him in the future.

I mean maybe the OP wants to know the rules so he can successfully shoot himself in both feet. He hasn't actually said that wasn't his plan.

 

Want to know what to do and what not to do,
Asking till I get whole picture
Also trying to save money on legal fees,do want ask them silly questions,want to be fairly prep.

 

Go get family law advice on doing a proper division of assets. Then get tax advice on the effect of the proposed property orders. That will save you money in the long run.

Forget about trying to "save money on legal fees" because frankly, you sound like someone who needs their hand held through the whole process.

If you think the legal fees for proper advice is expensive, then you'll be in a world of pain if the Family Court, the ATO and state revenue come knocking down the track because you stuffed something up.

 

Thanks for advice.
We pretty much agreed about super,spousal maintenance,house equity split, I am also aware about CGT
Is there anything else I should be aware of?

 

Ahh yes free advice. I have yet to see any lawyers include all the facts and guidance to assist such a request. They leave bits out...lots of it.
Yeah wait till her lawyer rips it apart. And its rejected as non-compling by a court and then one of both lawyers will rip it further apart and what sounded so practical will be a new problem. And could even be held to be a dutiable instrument. (Seen it) Then you will post asking for (free) help on that.

 

Yes - implementing it and making it legally watertight. Agreement in principle is fine, but often can be the easy part.

These things are complex legal issues, so treat them as such.

Just like buying a business or property, you shouldn't do these things on a handshake and some self-drafted attempt at a contract.