Asset splitting after a relationship breakup

[mattzigs]

Hi all, I have recently gone through an amicable split with my partner of 10 years. We have joint ownership of some real estate property (a house and a block of land). I have been advised by my accountant to get some financial advice regarding tax implications, stamp duty and the like before we actually divide the assets, and to put some thought into how we are going to split the assets before we begin.

I was interested to know if anyone else has been in the same position. I am interested in finding information on how to go about splitting assets, the costs involved and different strategies available as I would like to approach the financial adviser with my eyes open. I am also interested in your experiences, the pitfalls you faced, whether you would have done it a different/better way and costs you incurred both directly and indirectly.

Thanks in advance for your input, cheers Matt

 

[Krusty the Klown]

You would be best seeking out the advice of a lawyer in this regard if you haven't already, as the legal advice will dictate the what you can and can't do financially, and then investigate the financial ramifications of each option.

Also the best way to protect yourself.

You have a myriad of options open to you.

 

[Glen48]

What ever she tells you don't believe her ... get out asap .. Property is worked out by how much who started with and then decided from there but if she is female and lives in Australia any thing can apply.

 

[jono1887]

You would be best seeking out the advice of a lawyer in this regard if you haven't already, as the legal advice will dictate the what you can and can't do financially, and then investigate the financial ramifications of each option.

Also the best way to protect yourself.

You have a myriad of options open to you.

you'll probably have your half sucked dry in lawyers fees...

 

[trainspotter]

Define "amicable" to me Matt. Does this mean having your testes being ripped out through your wallet style or does it mean that you are going to actually split the difference between who bought what to the table at the start of the relationship? BIG DIFFERENCE. Better get yourself a lawyer son ...better get yourself a REAL good one.

 

[springhill]

Better get yourself a lawyer son ...better get yourself a REAL good one.

Long live Tex Perkins!

 

[jono1887]

Define "amicable" to me Matt. Does this mean having your testes being ripped out through your wallet style or does it mean that you are going to actually split the difference between who bought what to the table at the start of the relationship? BIG DIFFERENCE. Better get yourself a lawyer son ...better get yourself a REAL good one.

what happened to the good old days where you could sit down and work out who gets what without all the legal bs and hiring lawyers. I'm a pair of civilised people can work things out far more efficiently rather then getting expensive lawyers involved.

 

[skyQuake]

Long drawn out legal battles will suck you dry. Esp if there is child custody involved. The case file was many kilograms...

Try not to draw it out, see your lawyer and if everything isn't too vicious between you two then mediation with the lawyer is the best policy. The lawyer(s) will give you a guide of who should own what and you two can hammer out the details. Maybe $500 in legal fees if you get it over and done with.

good luck

 

[gooner]

Long drawn out legal battles will suck you dry. Esp if there is child custody involved. The case file was many kilograms...

Try not to draw it out, see your lawyer and if everything isn't too vicious between you two then mediation with the lawyer is the best policy. The lawyer(s) will give you a guide of who should own what and you two can hammer out the details. Maybe $500 in legal fees if you get it over and done with.

good luck

I had reason to use an employment lawyer last year - cost me $300 an hour. She was good, but even a crappy lawyer will be $150 an hour, but who wants a crappy lawyer?

My suggestion would be to see a lawyer to get an idea of what the legal position is regarding assets. Most lawyers will give you a free first half an hour or hour to discuss this sort of stuff.

Then knowing your legal position, try and negotiate an outcome with your partner. Once agreed, get a lawyer to draw up a legally binding agreement.

If it becomes non-amicable and lawyers get involved, you will be looking at spending lots of money to support lawyers houses in Mosman and Toorak, and their new BMW's every year.

 

[Sir Osisofliver]

Hi all, I have recently gone through an amicable split with my partner of 10 years. We have joint ownership of some real estate property (a house and a block of land). I have been advised by my accountant to get some financial advice regarding tax implications, stamp duty and the like before we actually divide the assets, and to put some thought into how we are going to split the assets before we begin.

I was interested to know if anyone else has been in the same position. I am interested in finding information on how to go about splitting assets, the costs involved and different strategies available as I would like to approach the financial adviser with my eyes open. I am also interested in your experiences, the pitfalls you faced, whether you would have done it a different/better way and costs you incurred both directly and indirectly.

Thanks in advance for your input, cheers Matt

Matt,

The use of discretionary trusts here are your friends. Any assets that are already in a trust cannot be touched in the event of a break-up. (These would be assets that you as an individual own, if you are joint Trustees over the trust then the assets can be split between the trustees - lesson of the day - be very careful who you invite as a joint trustee of your individual assets).

This probably doesn't help you right now. If you have a trust you should know this...but now you know what to do with the assets that are left after the split.

I find it surprising that your accountant is sending you elsewhere for tax implications...isn't that his job? Planners can tell you about structure and give you an indication about tax implications but generally then advise you to confirm things such as tax implications with your accountant. It's standard operating procedure in SOA's that when a product is recommended to be sold that you confirm CGT implications with your accountant for example.

Good luck

Cheers

Sir O

 

[swm79]

I agree Sir O.

I've had quite a bit of experience with the above through my former job as an accountant and FP and agree that the use of discretionary trusts is really very useful.... BUT, as always DYOR! (insert disclaimer) it is heavily dependant on your situation and there are a number of different avenues you could potentially go down.

As for you accountant referring you to seek advice as to the tax implications.... huh? HE/SHE should be able to do that!!!... i'd be finding another accountant!