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  • Where there is no court approval

    Attention

    Warning:

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

    End of attention

    If you and your spouse divide your property by some means other than because of a court order or an agreement approved by the court, normal capital gains tax rules apply-not the rules above. You must include in your tax return for that year any capital gain or capital loss you make on the transfer of a CGT asset. The spouse to whom the asset is transferred is taken to have acquired the asset at the time of transfer.

    Special rules may apply if the amount paid by one spouse for property owned by the other is greater or less than the market value of the property and they are not dealing at arm's length. In these cases, for capital gains tax purposes, they are taken to have paid or received respectively the market value of the property.

    Last modified: 31 Aug 2010QC 16195