A recent High Court case has found that a tax debt of one spouse can be shifted to another during a divorce property settlement, which lawyers say is unprecedented and could leave the richer spouse with the debts of their former partner.
The case of Commissioner of Taxation v Tomaras concerns whether the Family Court can give orders to government agencies — in this case the ATO — as part of the determination of a property dispute.
After the breakdown of a marriage, one spouse, who had incurred a $250,000 tax debt during the marriage, sought an order from the Federal Circuit Court that her (bankrupt) partner become solely liable for the debt.
The Full Court said s90AE(1) of the Family Law Act 1975 confers power onto the court that enables it to make an order that the commissioner be directed to substitute the husband for the wife in relation to the debt owed by the wife to the commissioner.Read More > Back to News
The closest train stations are Town Hall, taking the Park Street exit, or St James Station, taking the Elizabeth Street exit. John R Quinn & Co. is on the corner of Park and Elizabeth.
Best parking is in the Domain parking station. Take the moving footway and cross Hyde Park to reach our offices.