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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44196
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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We bought a business with another couple in 2006. My x

Customer Question

We bought a business with another couple in 2006. My x husband and I are now divorcing and the Family trust is an issue. I am the Trustee and apppointor although my husband has always controlled the distributions to beneficiaries who are all our children. We are oth beneficiaries also. I have never received any actual money from the trust.
Now that we are divorcing my x husband is a giving me the PAYG tax payments issued by ATO.
He states he will pay these but the money will come from my share of the assets at mediation.
As I have never received any money what advice can you give me in this situation? surely the business accountant could verify this from historic lodgements and statements etc. Please help.
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Morning

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

The tax debts are deducted from the total value of the assets of the marriage. Whose share they come out of will in the end be determined by the court of you cannot agree.

If the tax debts are yours then you should be liable for them.

If you have not received the money from the trust you can claim that now.

The law will apply the following steps in all family law matters

Step 1: Determine what the assets are and their value

This will include all assets and their value as at the day that you are dividing them. It does not matter whose name the assets are in, they will form part of the matrimonial pool. Superannuation entitlements are also included.

Step 2: Determine what contributions you and your Husband made towards the assets.

This includes a consideration of both financial and non-financial contributions. Consideration is given to what assets each of you brought into the marriage as well. The weight given to your initial contribution will be dependent upon the length of your relationship. The longer the relationship the less weight given to the initial contribution.

Step 3: What are each of your future needs.

Consideration is given to your respective ages, your comparitive income earning capacity as well as other factors.

IF these things don't balance equally for each spouse, then an adjustment is made in the percentages.

Step 4: Make an order that is just and equitable between both spouses

You will need to have a solicitor assist you in this and you will need to prepare a detailed history of what has been happening.

I hope this makes sense and is of assistance. If there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards

Leon