Page 24 - Tropic Magazine Issue 30

TROPIC • BUSINESS

Matrimonial

matters

PROPERTY SETTLEMENTS

Robert Ince, Partner at Grant
Thornton, discusses property
settlement when a couple
separates.

A property settlement is the formal
division of property following a couple
separating. Boiled down, it is the legal
division of the couple’s assets and 1 Determine the pool of 2 Tax implications
liabilities. Whilst this can occur without assets and liabilities Once a value has been attributed
court involvement, in many cases a family Assets commonly include items to the asset pool, the next step is to
lawyer will need to be involved. such as real property, businesses, look at whether the division of assets
It is also recommended to obtain superannuation, investments, will create any tax implications.
assistance from an accountant with motor vehicles, jewellery and money. There are some exemptions and
experience in matrimonial and de facto Formal valuations will often be rollovers available to remove or
property matters. This is particularly required to determine the value of defer such costs. However, in many
important when a business is involved, business and real property assets. cases income tax, capital gains tax,
or the couple’s financial affairs are Liabilities will include items such as GST and stamp duty will arise from
complex and include companies or trusts. debts, loans and tax payable. settlement or in the future when an
asset is sold. Another consideration is
what taxes would be payable if funds
are taken out of entities.

3 Be prepared
Having a solid grasp of what you
own (your assets), what you owe
(your debts), your income and your
expenses will help you prepare for a
property settlement.

Your advisors should take a forensic
and independent approach to the
process to assist in identifying the
relevant issues and the documents
that are necessary to achieve an
equitable settlement.
Splitting numbers Bringing in the experts early gives
you the greatest chance of achieving
49,116 divorces a positive outcome.
granted

113,815 marriages MORE: grantthornton.com.au
registered [email protected]
Source: ABS, 2019

24 • Tropic • Issue 30