Spousal Property Transfers
Transferring ownership of a matrimonial home between spouses is a conveyancing process where one spouse transfers property to the other. While it may appear straightforward, property transfers involve a number of legal requirements and are not always as simple as they first appear.
What is a Matrimonial Home?
A matrimonial home is generally defined as the principal place of residence shared by both or either of the spouses or domestic partners. For couples who have recently separated, it refers to their last shared principal place of residence.
Common Reasons to Transfer a Matrimonial Home
Whether you’re married, in a de facto relationship, or recently separated, there are various legal and financial reasons to consider such a transfer. Couples may transfer property between themselves for a variety of reasons, including:
- Tax planning;
- Estate planning;
- Relationship breakdown or separation;
- Restructuring of property ownership; and
- Asset protection.
It is important to note that such transfers are subject to legal requirements under the Stamp Duties Act 1923 and Stamp Duties Regulations 2013.
Is Stamp Duty Payable on Spousal Property Transfers?
In many cases, stamp duty is not payable when property is transferred from one spouse to another, provided certain conditions are met.
Stamp duty exemptions may apply to transfers of a current or last shared residence between:
- spouses or former spouses; or
- domestic partners or former domestic partners, provided the relationship is registered under the Relationships Register Act 2016 (SA) or equivalent legislation.
To qualify for the exemption, domestic partners or former domestic partners must have been living together in a ‘close personal relationship’ (that is, living together as a couple on a genuine domestic basis) and meet one of the following conditions:
- lived together continuously for at least three years; or
- lived together for at least three years in total over a four-year period; or
- have had a child together.
The exemption does not apply to other types of real property, such as vacant land or investment properties. If a mortgage exists on the property, the transfer will usually require the discharge of the existing mortgage and the establishment of a new mortgage in the name of the transferee.
Conveyancing Services
Wadlow Solicitors has over 45 years of legal experience, including residential and commercial conveyancing matters. Our friendly and experienced team is here to ensure everything is handled with care and professionalism. Whether you are planning for the future or navigating a change in circumstances, we are here to help. Transferring property between spouses or family members can be complex. If the legal process is not followed correctly, it may lead to unexpected costs, delays, or stress down the track.
Contact Wadlow Solicitors on 08 8212 2955 to arrange an appointment with one of our lawyers.
