Hi All,
Need a bit of advice on how to sort out my financial debacle I have found myself in.
Not sure what I am really looking for here but maybe some different sets of eyes looking from the outside in might provide some insight in to something I cant see.
I have recently had a separation but the timing from my ex was less than impressive. I finally got the other to complete our tax returns for our business after 3 yrs (she is a book keeper ironically) and knew we were facing a pretty hefty bill.As soon as this was done it as decided it was all too hard to work thru so she is off. I am now facing $250K PAYG and $30K GST.We also have 2 x houses, 1 in each name but both of us unable to refinance so we can just take one each as they are both geared to the max.On top of this there is about $45K in credit card debt I have to try and resolve as well and maintenance for the 3 kids.I have one of my properties in QLD with a DA ready to go which will give me free block of land which I was hoping on to refinance build and then re-mortgage to try and let $100K towards the tax debt in one hit.
But I need to make sure that I don’t let my ex any access to funds I come up with down the track due in no small part to her lifestyle choices eroding our money to begin with. Having said that we were both involved in the moeny spending so its not all one way blame.I have a pretty well paid job which provides about 250K minimum per yr and a couple of blokes working for me which reduces my costs a bit. Cash flow is not the issue ofr me its getting finance, I need something out of the box or totally left field to get me back on track.
Anyone??When you say "our tax returns" who do you mean owes the tax? If it is a company, then who are the directors?
You would need a binding financial agreement (BFA) signed under the Family Law Act (ie a prenup or postnup in this case). This will allow you to decide on the split of the assets without going to court and it should be binding if done properly. You should tax into account any tax due and who will pay for it.
The BFA will allow you to transfer property without stamp duty in most states and also without paying CGT. But the transferee will inherit the tax base of a property they receive so they will take any CGT that the other spouse may have had to pay up to that point.
Thats the legal side, and then there is the practical side. You must change titles and redo loans.
What sorts of current values for property and loans are we looking at? It would be good for you, perhaps, if you could get the property with the DA on it and give the ex the other. Does she have a job, ie could she get a loan on her own?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
We had a small omount of company tax to pay which is basically all sorted but the bulk of the Debt is PAYG in my name.
We both have a house in ech of our names although its a 99%/1% split each way.
The one with the DA is in my name and i am garauntor for the other mortage which is in her name.
She is unable to re-finance and get the loan in her name so I will still have to make up the shortfall in mortgage payments until she can.
I have taken advice on the BFA from a solicitor and basically trying to get all the debt left with me but indemnified from any further claims against me down the track which seems a good way to go.
I have managed to get her to agree to work with me to re-finance oneof the properties and have accessed some of my super to try and clear all personal which will be a start.
Sounds very complex. Her not being able to qualify for the loans makes it even harder. What about if she just sells "her" property and takes the proceeds. That would save you from having to guarantee the loan (but I guess she is probably living in this one).
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
No they are both rented out i n QLD and we are in WA.
But if we sell averything and take the debt in to account there is only debt to split which is pretty sub-optimal.
They are heavily geared so any sale would produce nothing to write home about after cgt and agents fees etc.
Having the houses for 7 yrs and 4yrs then selling for nothing is not ideal either consiering the amount of work i put into the DA.
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