Having being recently divorced from my wife, I was after any information on matters relating this to property investing. Any help appreciated.
Am paying child support of 32% of my income for my 3 kids. Am happy paying this as want my kids to have the best possible future. They are comfortable finacially and doing well.
My question relates to Selling verses Holing.
If I sell a property, then I not only have to pay capital gains tax, but also 32% of this to my X wife.
This tends to suggest that I and other people in this situation would be better of holding on to a property and using equity as a way of financing deposits for new IPs. That is don’t sell, which is not always ideal as it’s harder to achieve the “multiplication effect” of selling to gain more properties(?).
What are the legal and financial consequences involved in this situation?
How can I sell and achieve a financial situation that is equal or better to selling?
Cheers
Maybe you could partner with a third party – buying in their name?
However, if your wife found out she could possibly argue that the property is being held in trust for you.
Terryw
Discover Home Loans
Parramatta
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Using a trust is possibly the best option as you can sell and then purchase more property not in your name. Any profits inside the trust not distributed by the trust befor June 30 will get sluged 47% tax, so best move any money before.
As Terry suggested, if your ex found out she could argue they are held in trust for you, but she would only be entitled to 32% of the money distributed to you.
You might not distribute any funds to yourself or the trust might not have any excess.
I respect the fact that you are happy to pay child support, as there is many who don’t. But I don’t agree that you should have to pay 32% of the capital gain as this is for your future.
CATA
Asset Protection Specialist
[email protected]Is your 32% child support done through a private agreement or is that the amount assessment under the CSA standard formulae ?
You can apply to have a child support review if your circumstances change. (Ph 131141)AJBS
New divorcee,
Welcome to the club, I’m in a similar position to yourself though I lost all in the settlement.
As for protecting you hard earned cash post divorce, there are a couple of ways you can legally and morally do this.
Option 1 you already covered – hold. Depending on how old you kids are this can be a very long wait considering that you can be required to continue paying till they’re 25 provided they continue full time studies.Option 2 that I looked at was setting up some asset protection strategies that alos protect you from other possibilities of litigation. I suggest you seek advice from someone who specialises in this area. A start point is to go to Investor Asset Protection.com.au.
The above is basically isolating you from your assets by having a trust and or company that you control own the asset.
Cheers
[cap]
if you encouraged your wife to also buy properties, this would increase her income and reduce your child support.
Then you could buy/sell what ever you want if she is not dependent on your income.
just a thought!!!!
I really know NOTHING about how these family court situations like to work things out!!!
We buy properties in Adelaide. No Agent Fees.
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phone 0412 437 582Thank you to all of you for your valued suggestions[exhappy]
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