After a relationship breakdown, one of the most common legal and financial tasks is transferring property into one person’s name. In reality, stamp duty laws are complex, and exemptions are not automatic. Even in amicable separations, failing to follow the correct legal process can result in unexpected costs, including thousands of dollars in stamp duty. Whether you’re married or in a de facto relationship, many separating couples assume that because they already own the property jointly – and no money is changing hands – stamp duty won’t apply.
Unfortunately, this is a common misconception.
Is Stamp Duty Payable on Transfers Between Ex-Partners?
Yes – in most cases, stamp duty is payable when a share of property is transferred, even between ex-partners, unless the transfer meets specific legal exemptions set out under state or territory laws and is properly documented through a formal agreement or court order.
When You Don’t Have to Pay Stamp Duty After a Breakup
You may be eligible for a full stamp duty exemption if your property transfer meets certain legal requirements under Section 68(1) of the Duties Act 1997 (NSW).
To qualify for the exemption the property must be transferred to:
- Either or both parties to the former marriage or de facto relationship; or
- A child (or children) of either party.
The transfer must be:
- Made under a financial agreement in accordance with sections 90B, 90C, 90D, 90UB, 90UC or 90UD of the Family Law Act 1975; or
- Carried out under a Court Order made under the Family Law Act 1975.
In simple terms: If the property transfer is formalised through a Binding Financial Agreement (BFA) or Consent Orders approved by the Court, you won’t have to pay stamp duty on the transfer.
This can result in significant savings — often tens of thousands of dollars.
Other Considerations
Every separation is unique, and a simple property transfer alone does not completely resolve the financial relationship between former spouses or de facto partners.
Many people assume that once a property has been transferred into one partner’s name, the financial relationship is over. However, unless the transfer is part of a formal property settlement, either party can still apply to the Court under the Family Law Act 1975 for a further division of assets.
To protect your property interests after a separation, it’s essential that the transfer is included in a broader legal agreement, such as:
· Consent Orders approved by the Court, or
· A Binding Financial Agreement (BFA)
Speak to a Family & Property Lawyer Today
If you’re separating and need to transfer property, don’t risk getting caught out by unexpected stamp duty — or leaving yourself exposed to future claims.
Our experienced family law and property lawyers can:
- Advise on your eligibility for a stamp duty exemption
- Draft Consent Orders or a Binding Financial Agreement (BFA)
- Ensure your property transfer is handled legally and efficiently
- Help you save thousands in unnecessary stamp duty
We understand how stressful separation can be, and we’re here to guide you through the legal and financial process with clarity, care, and confidence. Speak to an expert
Contact us today to discuss your situation, protect your assets, and take the next step toward financial peace of mind. Contact us!