Hello,
If couple who co own a company (50/50) and have to sell the company + assets (property/ equipment) and split the amount in the bank account, due to the breakdown of their relationship, have to pay company tax, CGT and personal tax on these amounts (minus fees)? Or are they exempt under family law/ CGT roll over etc?
Assuming that you really have a company (Pty Ltd):
If transfer of the shares from A to B is part of a Family Court approved breakdoen agreement, then B will take on A's cost base for the shares. Treated as if B always owned the shares, so not a disposal for CGT.
Company bank account and assets belong to the company, so would not be split.
If A has lent money to the company, then the company should repay that loan.
If it is not Pty Ltd, then it is not really a company - you need to talk to your accountant and lawyer.
Assuming that you really have a company (Pty Ltd):
If transfer of the shares from A to B is part of a Family Court approved breakdoen agreement, then B will take on A's cost base for the shares. Treated as if B always owned the shares, so not a disposal for CGT.
Company bank account and assets belong to the company, so would not be split.
If A has lent money to the company, then the company should repay that loan.
If it is not Pty Ltd, then it is not really a company - you need to talk to your accountant and lawyer.
Hi Bruce4Tax,
Thanks for your reply. If there are multiple incorporated companies and A and B have to sell (not in a position to transfer between parties) as a result of a relationship break down, is it subject to company tax/ personal tac and CGT (minus fees)?
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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