Tax Implications of Divorce

Divorce rates are up as COVID-induced lockdown pressures cause relationships between couples to crumble. Negotiating a divorce can be complex and costly and the taxation implications of any division of assets should be a key element in the structuring of any settlement.

An unfortunate consequence of the coronavirus pandemic has been a surge in rates of divorce and relationship breakdowns as couples navigate the pressures of working from home, reduced social interactions, home schooling and lockdowns forcing them to spend increased amounts of time together.

Divorces can be costly affairs and the tax associated with the separation of assets under a family law settlement can be a material component of that cost unless the settlement is appropriately structured.

This session will provide an overview of the typical taxation implications associated with the separation of assets under a divorce settlement including:

• Availability of roll-over relief for transfers of assets by individuals, companies or trusts;
• Potential deemed dividends in respect of payments or transfers of property;
• Resettlement risk where amendments are made to trust deeds, for example, to change beneficiaries;
• Accessing franking credits when paying dividends as part of a settlement;
• Dealing with loans and unpaid present entitlements;
• Splitting of superannuation;
• Addressing historical tax exposures within a private or family group.

Learning Outcomes:

Attendees will be provided with an overview of key taxation considerations in structuring a divorce settlement illustrated through a series of examples.

Suited to:

Accountants, tax advisers and family lawyers.

This On Demand includes: 

• a recording of the webinar Event which can be viewed multiple times
• a PDF of the presenter’s PowerPoint
• a verbatim Transcript
• any supporting documentation
• a CPD Certificate after successful completion of the Knowledge Quiz