Spousal property transfer
It is quite common for married couples, those in a defacto relationship or recently separated to arrange a spousal property transfer. This allows the partners to transfer all, or part, of their ownership of the house to each other.
Matrimonial homes – the shared principle place of residence – are transferred between couples for a variety of reasons, including for tax or legal purposes.
What are the costs of a spousal property transfer?
A spousal property transfer is generally free from stamp duty.
“no duty is chargeable… in respect of a transfer of dutiable property from one person to another…if the persons are spouses or domestic partners of each other”
Subsequently, Section 44 states:
“no duty is chargeable…in respect of a transfer of dutiable property… if it is satisfied that the transfer has been made solely because of a breakdown of a marriage or domestic relationship”
However, legal fees and Land Victoria transfer fees, which is $138.90, must still be paid for a spousal property transfer.
Procedure for a spousal property transfer
A Transfer of Land document will need to be completed for a spousal property transfer. If your bank is holding onto the original title, their consent to the transfer will be required. Alternatively, you can request your bank to release the title to Land Victoria. You can find Land Victoria’s guide to spousal property transfers here. The State Revenue Office’s transfer between spouses/domestic partners statutory declaration will also need to be completed.
All these documents will subsequently need to be lodged with Land Victoria.
Contact our experienced property lawyers to discuss your spousal property transfer. We will prepare the legal documents, while liaising with your financier to ensure that this is a stress free transaction for you.
Obtaining the right advice is crucial, as spousal property transfers can be technical and if not lodged correctly can become a very expensive process.