Subdivision to settle divorce pay out, CGT?

[kurnol]

Good afternoon all, I'm looking for guidance on the following (I have read reams and reams of pages to no avail)

The property I live has had a subdivision approval go through (cost $50,000 and lots of headaches, plus 2 neighbours who don't talk to us anymore)
The subdivision and consequent sale of the back block of land is to pay out the ex spouse, this was all agreed in a binding financial agreement at the time of divorce. I intend to stay in the property

Am I liable for CGT with this scenario. Circumstances have changed since the time of the divorce and I do have a few other options available now

1) sell block stay in house pay out ex
2) re-finance pay out ex, build house then rent out
3) re-finance pay out ex, build house then sell
4) re-finance pay out ex, build house, move into new house then rent out old house.
5) re-finance pay out ex, build house, move into new house then sell old house.

I planned to buy an investment property once the divorce had settled so options 2 and 4 are what I am thinking.

I have made an appointment to see a tax specialist but would love some insight prior to that.

thanks in advance

 

[Terry_w]

If the agreement was to sell and then pay out the spouse I think the owner of the land will be up for CGT - or actually income tax probably.

If you transferred a block to the spouse the he or she would have inherited it pregnant with tax.

 

[kurnol]

Thanks Terry, not the answer I was hoping for
I was under the misguided impression divorce settlements were exempt from CGT.

 

[THEGREAT888]

Thanks Terry, not the answer I was hoping for
I was under the misguided impression divorce settlements were exempt from CGT.

It is exempt from STATE STAMP DUTY as far as I know.
CGT is different matter again. The link.

http://www.ato.gov.au/Individuals/Investing/Making capital gains and capital losses/

 

[Terry_w]

Thanks Terry, not the answer I was hoping for
I was under the misguided impression divorce settlements were exempt from CGT.

You are selling property and then, later, paying cash to your ex-spouse. If you transferred a property instead then it could be exempt from both CGT and stamp duty.

 

[Terry_w]

It is exempt from STATE STAMP DUTY as far as I know.
CGT is different matter again. The link.

http://www.ato.gov.au/Individuals/Investing/Making capital gains and capital losses/

Changing names on title to a property could be exempt from duty when it is a result of a relationship breakdown.