Divorce and Relationship Breakdowns - Untangling the Business Wealth

It’s not news that relationship breakdowns can be messy. However, throw a business entity or two into the mix and it is not just the relationship that may have unravelled. This session explores the issues and some tips along the way, including:

• How does CGT apply for assets:
  • divided under a private or informal arrangement?
  • using the CGT relationship breakdown rollover?
• How does the CGT rollover work if the asset is transferred:
  • from a company?
  • from a unit or fixed trust?
  • from a discretionary trust?
  • to an entity nominated by a spouse (Ellison v Sandini Pty Ltd [2018] FCAFC 44)
• What if the asset transferred is not subject to CGT (i.e., depreciating assets)?
• Do the tax implications differ if a private company transfers money or property under a court order to:
  • a shareholder spouse (TR 2014/5), or
  • a non-shareholder spouse?
• How do the franking credit rules apply to amounts paid from a company as a result of a marriage or relationship breakdown?
• Are cost base adjustments required for shares when property is transferred from a company under a family law obligation?
• The impact of marriage or relationship breakdowns on family trust elections
• Case study