Butterfly Transactions: Dividing Family Businesses Is Harder for Common Law Couples
Dividing up family property after separation or divorce can be a complicated affair. It is even more complicated when a family business is involved. The butterfly transaction or, divisive reorganization, is a common way of dividing up business assets after the breakdown of a common-law relationship or marriage. A butterfly transaction is a very complex process which requires the assistance of professional accountants and tax lawyers, but for some businesses the significant tax saving makes these professional fees worthwhile.
Generally, when assets are pulled out of company taxes must be paid to the Canadian Revenue Agency (CRA). It is important . . . [more]


