Finalising a property settlement legally after separation offers more than just certainty about your entitlements and obligations – there may also be substantial tax benefits.
When there is a transfer of real estate from joint names to one person only or from one party to another, it would normally attract stamp duty.
Under Section 113 of the Duties Act 2008 (WA):
Duty is not chargeable on a dutiable transaction to the extent that it is affected by a matrimonial instrument mentioned in Section 129 (b) or (c) or a de facto relationship instrument mentioned in Section 130 (a).
In 2014 the average value of a property in Perth was approximately $550,000. The transfer of a 50% interest in such a property would usually attract stamp duty of about $20,000.
However, if the transfer is made pursuant to an order of the Family Court or by and Financial Agreement, it would be exempt from this often expensive tax. The transfer would be assessed at a “nominal rate” – which is currently $20.
It is quite likely that the legal costs involved in preparing either an Application for Consent Orders or a Financial Agreement would be substantially less than the duty which would otherwise be payable.
Our family lawyers have years of experience in drafting Orders and Financial Agreements that will be entitled to the stamp duty exemptions.
Please call us on (08) 9335 9877 or complete the form below to request an Introductory Consultation.