Separation & sorting out IP's

[Annie]

Hubby & I are separating & have a reasonable portfolio of IP's, some in a family trust, some in joint names & some in my name only.
We're looking at keeping a business relationship going (both of us are reluctant to sell IP's, & we both want the equity to buy more- we think along the same lines there!)
Question is- as we're divorcing, I understand we can move equity without incurring CGT- looking into putting all properties into the trust, so can any gurus shed some light on whether or not this is true?
Ann

 

[duncan_m]

Question is- as we're divorcing, I understand we can move equity without incurring CGT- looking into putting all properties into the trust, so can any gurus shed some light on whether or not this is true?
Ann

When divvying up assets of a failed marriage CGT can be avoided if you're transferring between each other.. transferring to a Trust though will trigger CGT.

Of greater concern is Stamp Duty.. your PPOR will be exempt.. but the others maybe subject to stamp duty on transfer.. consult someone experienced in Stamp Duty in the state concerned.. there's ways and means, certainly in SA, to avoid Stamp Duty in this situation..

Kudos to you for keeping it civil! Its a feeding frenzy when the scumbag lawyers get involved.

 

[geoffw]

Annie

While I can't contrinute any more than Dunc (I haven't been through the situation)- a couple of points come to mind.

1. Congratulations for being able to come to an amicable agreement-m without having to fork out so many $$ to lawyers. I've seen people who have had even just one partner who is willing to lose many thousands (or more) in legal fees, just to ensure that the other also has to spend a similar amount. Obviously, a divorce is not a good thing. But it's great to see that some people can see common sense and agree without all the extra legal fees (I was going to say without rancour, but that's all probably happened already )

2. There have been suggestions that friendships, or even relationships, should be based on common investment goals. You've had those goals, together. Money handling is an important part of a relationship- much more important when one person disagrees with the other. But it's only one part of a relationship. There's still a lot more left which can go wrong.

 

[Annie]

Thanks for the advice- will certainly look into that.
Yes, split is probably as amicable as we can make it, & obviously neither of us wants to shell out hard earned to feed the shark frenzy (mention divorce & they go into a gleeful tailspin, methinks!)
Ann