In many ways, family law can be a serious burden on your finances: unexpected legal costs, filing fees with the Courts, the costs of the property settlement itself, the costs of a conveyancer… and now you have to pay stamp duty too!
However, we have one piece of good news for you: if your family law matter has been resolved through Consent Orders or Court Orders and requires that the family home be transferred from one party to another, you may be exempt from the usual stamp duty tax attracted upon the transfer of a property. A binding financial agreement may also result in a transfer of the home which will not attract stamp duty.
When a relationship breaks down, the Court has the power to order that the property be transferred from one party to the other. When this happens, stamp duty need not be paid.
As with all things though in family law, your circumstances will impact how this ‘plays out’ in your specific situation. This is because the Court only does what it believes to be ‘just and equitable’. So, before assuming you are exempt from stamp duty, it is important to seek legal advice. This is especially true if you own multiple properties.
Your next question might be then, well what if I’m not actually thinking of separating. Is there some way that I can get the stamp duty exception to apply to me? Read our article “Family law and Cheating Tax – it’s a no go” to find out more (we’ll give you a hint: the answer is in the title!)
If you have a family law matter, concerns about your finances or questions about family law, please do not hesitate to contact us on 9688 6023 or email us at info@franklegal.com.au.
This article is provided to the reader for general information. It is not legal advice. It was written by Andrea Spencer & Emily Graham and edited by James Frank.
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Family law, Separation, Family Law Lawyer, Financial considerations, financial impact, child support, children