Usually, when transferring ownership of property you will attract a hefty stamp duty bill – even if you are simply taking one partner’s name off the Title.
For example, an investment property in Parramatta, New South Wales (not the family home) is valued at $500,000.
If is being transferred from the name of both spouses/de facto partners, to the name of one spouse/de facto partner only.
This simple transfer would normally incur stamp duty of $7,240.00.
But if the property is owned by one partner and transferred to the other spouse / partner, then the stamp duty would be $17,990.00.
BUT the Family Law Act provides that no stamp duty (or other tax) is payable under any State or Territory law with respect to property that is dealt with in a Financial Agreement.
What does this mean for you?
This means that if you transfer property pursuant to your Financial Agreement, you will be exempt from stamp duty.
When applying for an exemption, you may need to provide the Office of State Revenue in your state of territory with a copy of your Financial Agreement, together with any other documents they may require.
Each state and territory has different procedures and requirements – you can view these and more by clicking on the links below.
If you have already paid stamp duty on a transfer of property in line with your Financial Agreement, most states will allow you some time to claim a refund.
Things you need to know
- The exemption applies to both married and de facto family law agreements.
- The property for which an exemption is being sought must be specifically referred to in your Financial Agreement.
- Motor vehicles and other types of property which would normally incur transfer duty or tax are included under these provisions.
- The person to whom the property is being transferred must be either a party to the marriage or de facto relationship, a child or children of either or both of the parties or a trustee for a child or children of either or both of the parties to the marriage or de facto relationship.