Don’t Forget about Taxes During a Property Settlement – Trust Distributions

Going through a divorce is never easy, and the last thing anyone wants are hidden tax implications to come out of the shadows following a property settlement. Such a situation commonly arises where a trust distribution forms part of the property settlement. There may be income taxes payable following the distribution, and if those taxes are not included in the divorce negotiations, then you may be left out of pocket for those expenses. No-one wants to be left in that situation, so it is important to be aware of what income or property you are receiving and what the future tax impact to you might be.

Ramona McGregor from Pilot’s tax team, and Montana Morais and Ashley Tulley from McInnes Wilson Lawyers, discuss what you need to be aware of in a property settlement to ensure you are not caught out by unexpected tax implications. A handy checklist is also available to help you navigate those property settlement negotiations.