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PO Box 1835 PENRITH NSW 2751

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April 17, 2016 by Daniel

Property Transfers – Divorce and Separation

Have you or someone you know been through a marriage breakdown?

One of the hardest things about a marriage breakdown is deciding how to divide the matrimonial assets fairly and doing so without incurring tens of thousands of dollars worth of legal costs.

The most significant asset that usually needs to be transferred or disposed of following the breakdown of a marriage is the matrimonial home, and quite often in these circumstances one party will “buy out” the other party (acquire their share).

If the parties are in agreement as to value, this can be done by a property lawyer without the need to go to court and spend thousands of dollars on legal fees. A property lawyer can prepare an agreement that the parties sign setting out how the matrimonial assets are to be split which can then be provided to the Office of State Revenue so that the transfer of the property is exempt from stamp duty (saving you tens of thousands of dollars).

It is important to remember that this option is only available in relation to the breakdown of a marriage.  While this stamp duty exemption also applies to de facto couples, in this context a binding financial agreement pursuant to the Family Law Act 1975 is necessary. This is a much more complex process that requires both parties to seek the advice of a suitably qualified family lawyer.

Another relatively unknown fact in the context of relationships and property ownership is the stamp duty exemption available to couples who want to transfer a property from one name into joint names. Provided that the transfer results in both parties owning an equal share of the property, no stamp duty is payable on this transaction subject to certain conditions. This is one of the few examples where a person can acquire a share in a property and not have to pay stamp duty.

For all of your property law needs, contact the team at Complete Legal & Conveyancing.

Filed Under: Blog, Property Transfers

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