Brett Hartley, leading Brisbane Family Lawyer was recently interviewed as an expert on Tax and Family Law for Business Spectator.
Brett was asked to give insight into the implication of tax laws when it comes to business and Family Law in Australia:
Marriage break-ups are rarely courteous affairs, and when it comes to family businesses they can be particularly nasty, and very costly, especially if they get to court.
In Australia, recent changes to tax law have also muddied the final waters for couples splitting up. A tax ruling by the Australian Taxation Office last year has created a new tax sting if a court orders that you receive money from a private company or trading business to which you or your former partner is linked.
In effect, the ATO has deemed that any transfer of property or payment of funds from a private company to members of a couple going through a divorce will be classed as assessable dividends. In the majority of situations it’s likely that a person receiving business proceeds via a Family Court order will be taxed at the top marginal rate (49 per cent).
You can read the full article here: Don’t Let Divorce Break Up The Family Business.