It is probably commonsense and goes without saying, but in so many matters we have clients present to us in an amicable manner that they have reached agreement and would like things wrapped up quickly.
However, in some of these cases, the client’s come with their Tax Returns not being up to date (sometimes more than several years behind) and Financial Statements also lagging behind. In those types of situations, it is important for clients to have their tax affairs in order and this includes lodging their most recent individual tax returns.
Even when parties are amicable, these tasks are essential and often we work closely with our client’s commercial lawyers and accountants (and other advisors), to ensure that everything is in place before the deal is done.
There can be adverse ramifications to one of both parties if orders are put in place about property settlement, when one does not know the current status of financial affairs between the parties and relevant entities.
Issues such as UPE’s, Division 7A issues, unallocated loan accounts, potential Capital Gains Tax and unrealised income tax problems are some of the “spiders” that may appear in subsequent years long after Orders have been agreed.
It is very difficult to set aside Consent Orders in the family law sphere and often, parties are left with substantial financial disadvantages because these “spiders” were not detected at the time the Orders were made.
If you need any further information or require any assistance with a family law matter, please contact one of our experienced family lawyers to see how we can assist.
The post Taxes & Financial Statements Being Up To Date Before Your Settlement first appeared on Hartley Family Law.
