The Capital Gains Tax Relationship Breakdown Rollover is a provision that allows an individual to defer paying capital gains tax, when transferring property. This is only available when the transfer is due to the breakdown of a relationship resulting in divorce or legal separation.
In these circumstances, you can "roll over" the gain that would normally be due when ownership of a property takes place, without incurring immediate capital gains tax liability. (Basically, you can pay your portion of the CGT later!)
The rollover of CGT will apply to the person who received the asset and will be paid when they eventually sell it, plus any additional CGT if the property has been income producing again.
The relationship breakdown rollover only applies if property assets are transferred under a court order or formal agreement. It does not apply under informal and private agreements.
This option is aimed at providing some tax relief to people undergoing significant life changes.