When is it better to put the property in One Name?

Couples traditionally put their properties into joint names. If the property is bought for cash, the taxation position is unaffected. However, if there is a mortgage, joint ownership can considerably diminish the massive benefits of NEGATIVE GEARING.

In some cases, it may be tax effective to split the ownership of the property. For example 99 % could be placed into the name of the highest earner and 1% for the other partner (known as Tenants in Common). Splitting the tax benefit this way can be most beneficial.

The rights of both parties are equal under the family law act. Your solicitor can draw up a written statement in the event of a dissolution, should ever the need occur.

N.B. If you and your spouse earn similar income (e.g. equal business partners) and prefer joint ownership, then the benefits of negative gearing are unaffected.

There are also other ownership structures into which to place the properties. Like trusts. Which hold great value in terms of protection as well as tax benefits. Again, specialist companies are able to assist you in this area, which can have a huge impact on your long-term returns. McCarthy Group is one such company.

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