QLD Ex asking me to take on his tax

[nearlydivorced10]

Hi I have been married for 16 years, and have 3 kids.
the ex earns a good income and has left me, but is asking me to still run money under me to save us paying more tax through a family trust

He says this is good for me as it looks like im earning money, in which case im a stay at home mother of 3 kids under 12.

I always signed and trusted him with money, but know that we are separated should I still be allowing him to run money under my name through the family trust and run up tax debts… that he pays.
He also says that it will allow him to pay me more money if I do this for him.

I dont know what to do here.. any help would be appreciated.

 

[Rod]

Families running trusts often do so to limit tax obligations. What your ex describes is certainly plausible but you'd need an accountant to sit down and crunch the numbers to know what works better in the event of separation divorce.

You should peek at the trust deed and see if dissolves on divorce. If it is to your advantage to keep the deed going and the deed dissolves on divorce, then it may be better not getting a divorce.

 

[nearlydivorced10]

Families running trusts often do so to limit tax obligations. What your ex describes is certainly plausible but you'd need an accountant to sit down and crunch the numbers to know what works better in the event of separation divorce.

You should peek at the trust deed and see if dissolves on divorce. If it is to your advantage to keep the deed going and the deed dissolves on divorce, then it may be better not getting a divorce.

Thank you so much for your prompt reply, yes the divorce will be going ahead, his moved out and on with his life, Is there a special sort of accountant that would be good to go and see?

 

[Rod]

Not really. As long as they do company and trusts accounting they'll know what to do.

Chances are you can't stop a divorce if he applies for one, but if you are starting the process you should wait till you look at the deed. Unless one of you want to remarry on the next few months there is no hurry. This is a big step and requires preparation and thought when significant assets are in play.

 

[nearlydivorced10]

Thank you no I am not starting the process. do you know at all if the Ex has future commissions forecasted because his works in property, should that be added in as part of the asset pool or not - future meaning he has earns the apex the same amount every year, but sales are in the future, so not made yet..

 

[Rod]

If the payments have not been earned they will not be in the pool.

 

[nearlydivorced10]

If the payments have not been earned they will not be in the pool.

wow, so even if his tax returns show he earns the amount every year,

 

[Rod]

You need to understand what an asset pool is.

An asset pool is what exists at a point in time. Can't have a future point in time because no-one has a reliable crystal ball. So the asset pool is what exists when the application for a property split is made.

 

[nearlydivorced10]

You need to understand what an asset pool is.

An asset pool is what exists at a point in time. Can't have a future point in time because no-one has a reliable crystal ball. So the asset pool is what exists when the application for a property split is made.

okay thank you.. your very helpful Rod. I appreciate it