Transfering properties into trust through family court?

Hi all, I have a question that has stumped my accountant so I thought I'd ask the property chat community.

I'm currently going through a separation and am looking to set up a trust the reason being I am hoping to have two properties transferred into this trust. The properties are currently in my ex wife's name I'm hoping that these can be transferred straight from her name into the trust I have set up, through the family court. Is this possible ?

Thanks in advance.

 

It stumped your accountant because it is a legal question.

Yes it can be done but you need to consider the duty and cgt issues.

 

Isn't this something your family lawyer should be helping you with?

 

OMG. Accountants cant give legal advice. One of the key CGT and duty issues is a legal outcome from the family law agreement.

 

If an asset is transferred from a trust to a spouse as a result of a matrimonial breakdown: the transfer can potentially be done free of capital gains tax (126-15)

If an asset is transferred from a spouse to a spouse as a result of matrimonial breakdown the transfer can potentially be done free of capital gains tax (126-5)

If an asset is transferred from a company to a spouse the transfer can potentially be done free of capital gains tax (126-15)

There is no CGT relief for transferring from a spouse to a family trust as a result of matrimonial breakdown. The matrimonial sections in the law are designed to assist in people getting divorced. It is not a tax planning opportunity to get your assets structured properly (sadly).

I have not yet considered child maintenance trusts but you might have some legs to that concept if you have enough dollars. Stamp duty is also relevant (of course) and I have not considered that yet.

My sympathies in getting divorced. It is never a pleasant journey and I hope it is over quickly with the least amount of pain for you both.