Show download pdf controls
  • Conditions for marriage breakdown roll-over



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

    End of attention

    For the roll-over conditions to be met, a CGT event must happen because of:

    • an order of a court or court order made by consent under the Family Law Act 1975 or a similar law of a foreign country, or
    • a maintenance agreement approved by a court under section 87 of that Act or a similar agreement under a foreign law, or
    • a court order under a State, Territory or foreign law relating to de facto marriage breakdowns.

    Please note that maintenance agreements registered under section 86 of the Family Law Act 1975 are excluded.

    Relevant CGT events

    For roll-over to apply, one of the following events must happen.

    In the case of 'disposing' of an asset, the transferor:

    • disposes of an asset to the transferee spouse (CGT event A1), or
    • enters into an agreement with the transferee spouse under which:
      • the right to use and enjoy a CGT asset passes to them, and
      • title in the asset will, or may, pass to them at the end of the agreement (CGT event B1). There is no roll-over if title in the CGT asset does not pass to them when the agreement ends.

    In the case of 'creating' an asset, the transferor:

    • creates a contractual or other right in favour of the transferee spouse (CGT event D1)
    • grants an option to the transferee spouse or renews or extends an option granted to them (CGT event D2)
    • owns a prospecting or mining entitlement, or an interest in one, and grants the transferee spouse a right to receive income from operations carried on by the entitlement (CGT event D3), or
    • is a lessor and grants, renews or extends a lease to the transferee spouse (CGT event F1).

    There is no roll-over for the transfer of trading stock.

    Last modified: 31 Aug 2010QC 16195