Do I Pay Stamp Duty To Transfer My Property After A Divorce?
Stamp duty exemption transfer between spouses
You can potentially save thousands of dollars in stamp duty if you read the following guidelines to get the stamp duty exemption for transfer between spouses.
If you transfer a share of your property to a former spouse or de facto partner you are NOT liable to pay stamp duty.
The transferee could also be to a child or children, or to a trustee for the child or children, of one of the parents of the relationship.
Follow this very easy, step by step guide, in order to ensure that you DO NOT pay the government more money than you should.
You must ensure that the transfer of the property must be in accordance with either:
1. A Court Order made under the Family Law Act 1975, OR
2. A binding financial agreement made under the Family Law Act.
You do not need to go to court to get a binding financial agreement.
This exemption applies to both married couples and those who are in a de facto or domestic relationship.
There are a number of factors considered when determining if the parties have a relationship as a couple living in a de facto relationship.
If you require an agreement that will help you get a stamp duty exemption, please contact us now.
The Application for consent orders costs around $3,500 and can be submitted to the courts within a week.
It is normally a much better outcome than being slapped with a stamp duty bill!
Stamp duty on divorce property settlement can be waived.
Transfer house title after separation
To transfer house title after separation is quite a straightforward process. Your stamp duty when separated will be waived if you follow these steps appropriately.
The first thing you will need to do is check with your bank to see if you can finance the transfer of the house in your sole name.
If the property is coming from a joint name holding to a sole name holding, the bank will need to see if you have the capability to service this new loan.
Secondly, you will need to engage a solicitor or conveyancer to help with the transfer of the property.
Thirdly, you will need to engage a solicitor to help you draft a binding financial agreement or consent orders explaining the separation and property settlement.
Step by step guide for stamp duty exemption transfer between spouses
You can waive your stamp duty fee by following these steps:
1. Get a certified copy of your Court Orders or Binding Financial Agreement. The document will need to say that the property is to be transferred to one of the parties to the marriage.
2. Download and Complete the Transfer form from the Department of Land and Property website.
3. Download and Complete Form ODA 069 ‘Application for Exemption or Refund – Breakup of a Marriage or De Facto Relationship’ from the Revenue NSW website.
4. Download and Complete the Purchaser Declaration form from the Revenue NSW website.
5. Send the above documents to Revenue NSW to be noted for stamp duty exemption.
6. Once approved, Revenue NSW will send the Transfer form back to you. It will be returned stamped and marked ‘Exempt from Stamp Duty’.
7. Lodge the stamped Transfer, together with the Notice of Sale, Certificate of Title, fee, Discharge of Mortgage at the NSW Land and Registry Services.