26/07/2026
THINK CAPITAL GAINS TAX AUTOMATICALLY REDUCES AN INVESTMENT PROPERTY? THINK AGAIN.
Many separating couples are surprised to learn that capital gains tax isn't automatically deducted from the value of an investment property during a family law property settlement.
Instead, the Court considers questions such as:
• Is a sale actually likely?
• Who will be responsible for paying the tax?
• Can the liability be properly calculated?
• Does the evidence support the claim?
These issues can significantly affect the final property settlement, particularly where the asset pool includes investment properties, businesses, shares or family trusts.
Understanding capital gains tax in family law isn't about finding ways to avoid tax. It's about ensuring any tax consequences are treated fairly and supported by evidence.
Every family's financial circumstances are different, which is why tailored legal advice is so important before agreeing to a settlement.
If your separation involves an investment property or other assets with unrealised capital gains, speak with an experienced family lawyer before making decisions that could have long-term financial consequences.
Learn more by reading our latest article or contact our North Sydney team for confidential advice: https://consortfamilylaw.com/news/capital-gains-tax-in-family-law/
If you own an investment property, shares or a business that has grown in value, capital gains tax in family law is one of the first things worth understanding before you agree to a property settlement. CGT in family law is rarely a simple accounting exercise. It turns on whether a sale is genuinely...