Transfer Duty, or Stamp Duty, is a fee charged by the Government when you purchase a property. But where a property is transferred because of a divorce or relationship breakdown, it is possible to avoid paying Transfer Duty.

Section 90 of the Family Law Act exempts transfers of property where:

  • The property is transferred between a married or divorced couple, as a result of court orders for property settlement under the Family Law Act.
  • The property is transfered between a married or divorced couple in accordance with a binding financial agreement/prenuptial agreement or a maintenance agreement made under the Family Law Act.

Section 90WA Family Law Act provides a similar exception for de facto couples.

Section 163B & Section 68 of the Duties Act similarly exempts property transfers where:

  • The property is transferred to a party of a marriage as a result of a court order or financial agreement under the Family Law Act, provided that that marriage has been dissolved, annulled or broken down irretrievably.
  • The property is transfered to a party of a de facto relationship as a result of a court order or financial agreement under the Family Law Act, where that relationship has irretrievably broken down.
  • The property is transferred to a child of a marriage or de facto relationship (or a trustee of that child).

Claiming an Exemption

To claim an exemption, you will need to satisfy Revenue NSW that the transfer falls within the relevant exemption.

  1. You will need to satisfy Revenue NSW that the transfer is a result of a relationship breakdown; AND
  2. Provide Revenue NSW with copies of the relevant court orders or financial agreement.

DISCLAIMER: The information provided above is published for general informational purposes only and is not intended to be nor should it be relied upon as a substitute for legal or other advice.