Anyone here done some figures and suddenly realise your ++CF property is under your nose.??
Im only a week out from reading it. Green in that respect not in real estate as have worked in industry over the years even in co related.But interested in how do you go about it ??? Like my other (ex)matrimonial partner is living in it………it is in a regional area from where I am based…I do have considerable equity in it. The figures look like stacking up …. and he is receptive to a rent back proposal.
Any advice appreciated……….Correct me if I have this wrong… but you plan to buy the matrimonial property and then rent it back to the ex??? Hells bells, you are game girl.
I would definitely suggest using a property manager as middle man to handle the rental. I would also get it registered with the family court so that he can not turn round in a years time and state that he was contributing to the joint mortgage or anything and want more equity out of it. Sounds as tho the two of you are still communicating. That is great. Just expect that all to change as soon as you find a new partner. Treat this like any other business deal. Do your homework as you would any other property transaction.
All the best,
Fibejebe.
Like my other (ex)matrimonial partner is living in it………it is in a regional area from where I am based…I do have considerable equity in it. The figures look like stacking up …. and he is receptive to a rent back proposal.
Any advice appreciated……….I totally agree with Fibejebe on this one , things tend to change as soon as one partner moves on to their next relationship and get messy. THings usually settle down again after a year or 2 tho.
Regards Bear
Thanks for replies.
Yes all in the process of matrimonial “sorting out” who gets what, solictors in process of preparing docs. Its taken two years already but that was largely my delay on waiting for the new Super Laws to come in.!!!I would be appointing a property manager for sure & have already received a rental appraisal.
Hi all
Been doing facts and figures for about 8 times round. If the ex who is a qualified builder…how do I go about having a win win out of this.
The prospective real estate lady advised me today it was difficult to list any current/prospective maintenance issues due to amount of furniture in house.
Im obviously going to have to have a detailed report at some stage…but how do I stitch something up like I know one air con doesnt work…..like when he becomes the tenant (and his woman of two years) I dont want to be exposed with a whole lot of “well shes paying for this now lets make our demands”.
Any ideas??
Also what if I just wiped the slate .He has to find elsewhere and I get freshies in??
Would a clause like i pay for materials to a certain value.without prior appoval on a negotiated rent reduction. Like its the family home but want my “business” interest protected.Jan it could be very harmfult to you to offer suggestions without more specific detail.
JonWhy would he not want to buy the house?.
Especially considering he`s a biulder and lives there already?.Wouldn’t it be better to make a clean break and have no connection whatsoever propertywise ?
I can see big problems here even though you may see renting the property to your ex as a business decision.
Pisces133
Jancrow’s
Your ex is living in it and you have equity in it so presume you both owned it at one stage ??
Whose name is the property in etc.. you need to post more details, if the property could be sold to you, he could recieve cash from his equity and sign a rental agreement for you, justmaking random guesses here without all info..
REDWINGSecret Plans and Clever Tricks – Divorce Rollover Relief
The rollover relief that is available, under section 126-5, to couples facing divorce means that assets can be transferred by one spouse to the other without any CGT consequences. If rollover relief does not apply section 116-30 will deem the transfer to take place at market value which may result in a CGT liability for the transferring spouse. For rollover relief to apply there must be a court order or section 87 maintenance agreement under the Family Law Act, corresponding foreign family law or a state or territory or foreign law relating to defacto marriage breakdowns. This is not an option but an unavoidable consequence unless you transfer the property before the court order. Rollover relief is not available to same sex couples.
When a spouse receives an asset under the rollover relief provisions, he or she receives the asset at the cost base of the spouse giving the asset and the spouse giving the asset is not subject to capital gains tax on the transfer. Or if applicable, the asset will retain its pre CGT status.
It is not always advantageous to utilise the rollover relief but if the arrangement is part of a court order rollover relief is not optional. But not all assets need to be covered by the court order. The idea is to sort through the assets as to what needs rollover relief and what doesn’t.
A very good example of how this relief can be used to your advantage is combining it with the main residence exemption under Division 118 to exempt the property, from CGT, for the whole period of ownership. For example:
B owned a main residence and a rental property at the time of marriage. At all times up until the time of divorce the properties were always used as a main residence and a rental property respectively. An agreement stamped by the court awards the rental property to B’s spouse. B retains the main residence and continues to use it as such. The main residence will be exempt from CGT from the time of purchase right through the divorce up to a time B either sells it or elects not to have it considered his or her main residence. Due to rollover relief B will not be subject to CGT on the disposal of the rental property to his or her spouse. B’s spouse’s cost base of the rental property is the same as B’s original cost base plus transfer fees and capital expenditure. So B’s spouse may end up bearing the CGT on this property. But if B’s spouse uses the rental property as his or her main residence from the time of the transfer up until it is sold, the main residence exemption will protect B’s spouse from any CGT because, under section 126-5 the transfer date is the acquisition date so for the whole time of ownership it has been B’s spouses main residence. Note for the purposes of section 115-30 the acquisition date is B’s acquisition date so that the 50% discount will be available immediately to B’s spouse if B had held the property for more than 12 months.
The above will not work if the property is transferred from a company rather than a spouse. Rollover relief under Section 126-5 is still available but, under section 118-180(1), the spouse is considered to have acquired the property at the date the company or trust originally acquired it so the property will always not be considered the spouse’s main residence for the period it was owned by the company or trust.That was an interesting contribution Julia.
Ever so slightly diverging from the subject, does anyone has any idea what the situation is as far as CGT is concerned in the following scenario ?
Two partners (not necessarily husband and wife, I am talking about two business partners) own several properties jointly.
It is possible for partner A to tranfer to his or her partner B B the share A owns in property K and in return for which partner B transfers his or her share in property L to partner A.
All this can be done without attracting transfer duty (stampduty) provided the respective shares are of equal value (as attested by a valuer). In the event where the parts being respectively transferred are not of equal value a small adjustment in stampduty is payable.
What however is the situation there as far as CGT is concerned ?
Has anyone any idea about this ? Julia ?
Thanks,
Pisces133
Pices133
It is a normal transfer at market value normal CGT ramifications. Assuming the properties are only used as rentals not as business premises. If business premise they would be active assets so more CGT concessions and rollover releif may help.
julia
Thankyou to all for your replies.
Julia the info on CGT is most valuable and something I obviously hadnt thought about. The stamp duty aspect is something I was going to seek advice on as it is a costly issue also.
The property is almost everything “Redwing” guessed at. PPOR family home , however I have not lived in it for nearly three years now. We had other investment propeties that have been dealt with.
He is planning to retire in 18 months (somewhat older than myself) and move interstate so I thought this inital idea was a win/win for us both. However I would possible never live in the home again.
I am not comfortable with placing more personal info on here [
] but happy to discuss by PM as I do appreciate this excellent advice thus far.
It really isnt as simple as I first thought. !!![:0]Regards
“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson
Jan
My e-amil address is [email protected]Julia
] but happy to discuss by PM as I do appreciate this excellent advice thus far.You must be logged in to reply to this topic. If you don't have an account, you can register here.
