One of the most common questions we receive as family lawyers is whether it is necessary for parties to a marriage or de facto relationship to formalise their property settlement when they have reached an agreement about who will retain the property. The answer is yes!
If there is a property that is required to be transferred as part of your property settlement, section 68 of the Duties Act 1987 (NSW) allows for there to be an exemption from any stamp duty payable if the property is transferred or sold to:
- Either a party to the marriage or de facto relationship
- A child to the marriage or de facto relationship
- A trustee of a child to the marriage or de facto relationship
This exemption applies when you have separated from a marriage or a de facto relationship. The parties will need to satisfy Revenue NSW that the transfer is a result of the breakdown in the relationship.
In order to process the application for exemption from stamp duty, Revenue NSW will require either:
- Consent Orders made by the Family Court; or
- Financial Agreement.
These documents record the terms of your property settlement, thereby formalising the agreement.
The cost of formalising your property settlement by Consent Orders or a Financial Agreement is considerably less than the cost of paying stamp duty on the transfer, saving the parties tens of thousands of dollars in some circumstances.
We are registered with PEXA, the electronic conveyancing platform, which means that we can assist you through the entire process from formalising your agreement through to acting on your behalf in the transfer and refinance of the property.
Do not hesitate to contact us for more information or book a free no-obligation 30-minute consultation with us here: https://www.nolanlawyers.com.au/free-consultation/