When faced with potential marital/relationship breakdown, the taxation implications of the division of assets and entities is often the last thing on a client’s mind. Structures evolve over time, and are usually established with little or no consideration of the possibility of divorce.
This is a critical topic and impacts all SME practitioners at some point with considerations including:
- Entity control and continuity of ownership issues
- UPEs, Div 7A and Family Trust Election implications
- Revision of Trust Deeds, including Guardian or Appointor
- Impact on Business Real Property
- Superannuation and CGT asset rollovers available
- Ethical issues; and
- Recent case law.