Capital Gains Treatment on Divorce

Going through a divorce? Don’t overlook the potential tax implications of selling or transferring assets. When assets are sold as part of a divorce process, capital gains tax (CGT) rules can still apply in the same way they would outside of a separation. For example, selling shares or other investments may trigger a capital gains event, which could result in tax being payable on any gain made. This is an important consideration when negotiating a settlement, as the value of an asset may look different once potential tax liabilities are factored in. In some situations, transferring ownership of assets rather than selling them may help avoid triggering an immediate capital gains event, depending on the circumstances and applicable rules. Divorce settlements can involve complex decisions around property, investments, superannuation, and tax. Working closely with your solicitor, accountant, and financial adviser can help ensure all aspects are considered and support a more informed outcome for both parties. Always seek personalised financial, legal, and tax advice based on your individual circumstances. General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Amy Lehmann is an Authorised Representative(No. 1292710) of AFSL 495401.