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Divorce Tax

02 February 2012

Life is about change.  Change can be a positive thing but sometimes the changes we need to deal with can be emotionally, spiritually and potentially financially debilitating.  A life changing job opportunity is a cause for celebration as is the chance to own your own business.  On the flip side, separation, divorce or the death of a spouse may be a situation where the emotional rollercoaster makes dealing with change extremely hard to deal with.

In all of the above circumstances good advice is critical.

We all know as women, that it’s the little things that count… 

•being organised; 

•being prepared; and 

•getting the little things done

 can set you up for a lifetime of wealth creation and ultimately financial freedom. 

Getting the right advice at the right time can make all the difference – but what does this mean?

Consider the following ten points:

1.Remembering that tax is inevitable as we generate wealth will helps us to understand that managing our tax liabilities at all stages of our life is just as important to our long term well being as generating wealth - it’s one of those little things…

2.Understanding that if we set goals every day and if we forecast & budget, adapt and monitor our performance against expectations in all aspects of our life, this will help us to ensure our skills are translated into achieving the financial goals we want for ourselves and our family…

3.Knowing that there are  tax concessions potentially available when we own property, will help us to ensure our kids are taught how applying the concessions properly could help them to achieve financial independence earlier than we did…

4.Understanding the tax advantages of salary sacrificing expenses including superannuation can help to maximise wealth creation, assist in making career choices such as a job in the non-profit sector, and/or ensure that good staff are rewarded and appreciated…  

5.Understanding that taking that dream job overseas and then returning home to Australia at a later point brings with it tax issues that can be managed and minimised with the right advice at the right time…

6.Getting assistance when contemplating an opportunity to buy a new business, expand or sell can ensure the best outcome is achieved – for example accessing grant funding, ensuring offshore tax outcomes are planned for and/or maximising capital gains concessions…

7.Realising that the structure that we set up for our business now, can mean significant tax minimisation throughout the life of the business including upon sale…

8.Understanding that divorce is never expected but nonetheless financial outcomes can be managed…. Child maintenance trusts can assist with spousal maintenance… capital gains tax can be managed when there are asset transfers… you can manage your own superannuation fund… that an FTE on divorce can hinder how funds are transferred from a trust… that drawing funds from a company could have unintended tax consequences… and that paperwork transferring shares, adding or removing company directors from companies, or updating wills, are “little things” but absolutely vital…

9.We all want to ensure our family is financially secure if something happens… and insurances and wills are key strategies for many of us. Understanding tax advantageous ways of holding insurances and structuring wills can be key in maximising wealth and ensuring those that we want to benefit from our wealth creation do…

10.Realising that succession planning is an opportunity to plan for wealth creation… and that good tax advice at the right time does cost, but can be worth its weight in gold... 

We’re all also individual… our own circumstances are clearly unique….  So our advice to you is to put us on your list of “little things to do”… and we’ll work with you in ensuring you get the right advice at the right time. 

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