Separated couples two homes and tax free capital gains

Do separated couples who purchase a second home after separation obtain tax free capital gains on their principal place of residence for both homes?
 
s.118-170 ITAA97 Spouse having different main residence - restrictions on exemption.

s.995-1(1) ITAA97 definition of spouse - includes individuals in a registered relationship, and individuals living together in a domestic relationship as a couple. The use of the word "includes" means also a spouse within the ordinary meaning.

Does "separated couple" = still married ?

Are they purchasing property before they have entered into a property settlement ?

Waaaay too many variables for anyone to give a simple yes/no answer.
 
Usually is such circumstances one or the other will end up with 100% of one prop and other to their ex. I would address that issue too as it could mean that there is a potential CGT liability that will be deferred and if the property is now a main residence that tax will "fade" over time.
 
Sorry Rob Mean separated but not yet divorced

I reckon that potential CGT on a new purchase is insignificant compared with the need to arrange your financial separation. You need to find out if you are in a position to purchase.

You need to talk to a family lawyer and also a financial planner about a property settlement on your relationship breakdown. There is no certainty until a settlement is reached or a court orders such.

Both of those advisers should refer to a tax agent about potential compulsory CGT rollover and main residence exemption to factor into the settlement.

Getting them talking to each other is often difficult because they want to put disclaimers in their advice limiting scope.
 
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