Do I Pay Stamp Duty To Transfer My Property After A Divorce?

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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.

This is all under s163B of the Duties Act which provides for an exemption to stamp duty if there is a breakdown of a marriage.

Follow this very easy, step-by-step guide, 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 by 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.

stamp duty on divorce property settlement

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 here.

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 ODA076  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.

 

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    Is Stamp Duty Payable on Divorce Settlement?

    Stamp Duty is generally not payable on property transfers that occur as a result of a divorce settlement. When a marriage or de facto relationship ends, property or assets transferred between the parties as part of a court order or financial agreement (consent orders) under the Family Law Act are usually exempt from Stamp Duty.

    However, it’s important to ensure that the transfer is done according to legal requirements to qualify for this exemption. The specific rules can vary slightly between different states and territories, too so you should also take consideration of that.

    Do I Have to Pay Stamp Duty if I Buy my Partner Out NSW?

    Whether you have to pay stamp duty when buying out your partner depends on various factors, primarily the type of property and your relationship status:

    Relationship Status

    • Married or De Facto Partners: If the property is your family home (principal place of residence) or vacant land intended to be the family home, you are generally exempt from paying stamp duty when transferring the property between yourselves.
    • Other Relationships: If unmarried or in a de facto relationship, you may be liable for stamp duty. However, you might still qualify for a reduction or exemption under certain circumstances, like relationship breakdowns.

    Type of Property:

    • Family Home: As mentioned above, transfers of the family home between married or de facto partners are usually exempt from stamp duty.
    • Investment Property: It’s important to note that if the property is an investment, you might have to pay stamp duty, even if you are married or de facto partners. Understanding this potential liability can help you make informed decisions about your property investments.