Buying your first home is very exciting but the majority of people don’t take into consideration a number of things when buying their first home.
- 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.
The road down the family law property settlement path can be quite difficult and generally there is a sigh of relief once everyone has signed on the dotted line. However there is the issue of enforcement of Court Orders.
For a Binding Financial Agreement(or ‘BFA’) to be legal and binding, the couple must enter into the agreement of their own free will and be fully informed.
A Binding Financial Agreement (or ‘BFA’) is a written agreement between two or more people, setting out how property, financial resources and spousal maintenance will be dealt with in the event of a relationship breakdown.