Divorce and separation in Australian family law are two areas that are riddled with misunderstanding. Whether your knowledge of separation and divorce comes from American television, that friend you have who recently got divorced or your own experience, these 5 misconceptions will help to clear up any grey areas you might have around the topic.
Binding Financial Agreements (BFAs) and Property Consent Orders are two options in Australian Family Law for couples that wish to divide their property pool on a final basis in a relatively amicable way and to document their agreement. Both options are less stressful, more efficient and cheaper than going to court. Property Consent Orders are made by a court upon application by both parties who have reached an agreement as to how the matrimonial/relationship property should be divided after separation. On the other hand, BFAs function like a private contract between the parties that can be made before the relationship commences, during the relationship, or after the relationship has ended. They do not require an application by the parties to the Court or the Court’s approval. There are advantages to both options which we outline below.
- The recent case of Sandini demonstrates the circumstances in which a transferor spouse may be exempt from CGT when transferring property to their former spouse under family law orders.
- Family lawyers must have a well-grounded knowledge of the tax implications of property transfers and should not hesitate to obtain single expert taxation advice when required.
- Care must be taken when drafting family law orders, as simple mistakes can have significant tax consequences for parties.
Selling your business is the furthest thing in your mind when you are in the positive stages of a thriving business.