How are family law court obligations treated under Division 7A?
As part of a divorce settlement and under a Family Law court order a car belonging to my private company in which I am the sole shareholder is to be transferred to my ex-wife. Is there a Division 7A implication?
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Answer by Anton Joseph, Sydney 2000 NSW
- Yes. The transfer of the car will be deemed a dividend under Division 7A.
- However the dividend may be frankable since it is a family law obligation.