Frank Law Blog

Executive Summary

1. 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.
2. 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.
3. Care must be taken when drafting family law orders, as simple mistakes can have significant tax consequences for parties.

If you are having problems receiving your entitlements after a family law property settlement or parenting matter, you have clear remedies if Court Orders are in place. See here our blog post on the importance of Court Orders in this context.

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.

A Binding Financial Agreement (or ‘BFA’) is sometimes considered the same as a ‘pre-nup’. ‘Pre-nup’ implies that a couple must enter into an agreement before they get married. This term is commonly used in Hollywood TV shows and movies but has no real application in Australia.