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  • Chapter 8-Marriage breakdown



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Read this chapter if your legal or de facto marriage ended on or after 20 September 1985 and:

    • you transfer an asset to, or receive an asset from, your spouse, or
    • a company or trustee of a trust transfers an asset to you or your spouse.

    Note: New terms

    There may be terms in this chapter that are not familiar to you. Refer to chapter 1 in part A for more information or to the Explanation of terms in this guide.

    When we talk about 'your spouse', this includes your de facto spouse, while 'transfer of an asset' includes disposing of an asset to the transferee spouse or 'creating' an asset in their favour.

    The term 'transferee spouse' refers to the spouse to whom an asset is transferred, while the 'transferor' is the person (or a company or the trustee of a trust) who transfers an asset to the transferee spouse.

    As a general rule, capital gains tax applies to all changes of ownership of assets on or after 20 September 1985. However, if you transfer an asset to your spouse as a result of a marriage breakdown, there is automatic roll-over in certain cases (you cannot choose whether or not it applies).

    This roll-over allows you to disregard a capital gain or capital loss that would otherwise arise. In effect, the one who receives the asset (the transferee spouse) will make the capital gain or loss when they dispose of the asset. If you are the transferee spouse, certain attributes of the asset are transferred to you as a result.

    You must keep all relevant records, as explained in chapter 3.

    Last modified: 31 Aug 2010QC 16195