Issue

Family Law Settlement - How to process the rollover out for investment without triggering Capital Gain?

Cause 

Due to Family Law Settlement, half of the investments will be transferred out at Market value to another fund. The transfer needs to be processed without triggering Capital Gain. 

Resolution 

To process the rollover out without triggering a Capital Gain:

Step 1: Set up new holding account for the investment which will be transferred out

Step 2: Split the parcels 

Step 3: Transfer the holding account - Disposal at agreed price

Step 1: Set up new holding account for the investment which will be transferred out

Navigate to Fund level > Investments > Investment Account

1. Create a new holding account which will be transferred out
2. Change the Capital Gain Classification to Non CGT Asset, this ensures there is no capital gain calculated on disposal of the investment 
   
   

Step 2: Split the parcels 

Navigate to Fund level > Transactions > Investment - Corporate Action > Spinoff or Demerger

1. Enter the existing investment holding account into Source Investment Account
2. Enter the newly setup investment holding account into Target Investment Account
3. Enter the Family Law consent order date as the Action Date
4. Click on Update Parcelling
5. Enter the Target quantity 
6. Enter Target Market Value
7. Use Investment - Corporate Action > Split or Consolidation to reduce the unit of the Source Investment Account
   
   

Step 3: Transfer the holding account - Disposal at agreed price

Navigate to Fund level > Transactions > Investment - Sell > Listed Security Disposal/Unlisted Security Disposal

1. Create disposal event as at the Law 
2. Trade Value should be the Family Law Settlement agreed amount