What if my former spouse paid me income I didn’t know
about?
In Australia, when a married or de facto couple divorces or
separates, their assets and liabilities are typically divided into a pool,
which is then split between the parties based on a range of factors.
This pool generally includes all assets and liabilities that
either party has an interest in, regardless of whether they are joint or
individual.
One issue that can arise in this context is where a wife has
a tax liability for income that she received from her husband, but wasn’t aware
of at the time of separation.
Under Australian tax law, individuals are generally
responsible for paying tax on any income they receive, regardless of whether
they were aware of it or not.
This means that if a wife received income from her husband
but didn’t realise she had a tax liability, she may still be liable to pay the
tax owed.
However, whether this tax liability forms part of the
asset/liability pool at separation will depend on a range of factors, including
the nature of the income and the specific circumstances of the case.
In some cases, the tax liability may be considered a joint
liability, meaning that both parties are responsible for paying it and it forms
part of the pool.
Ultimately, the specific treatment of the tax liability will
depend on the facts of each case, and it’s important to seek professional
advice from a family lawyer or tax specialist to determine your rights and
obligations.
It’s also important to note that if the wife was not aware
of the income and therefore did not receive the benefit of it, she may be able
to seek relief from the ATO in the form of remission or a payment plan.
Seeking professional advice early on can help you understand
your legal obligations and options, and ensure that you receive a fair and
equitable division of assets and liabilities in the event of a separation or
divorce.
