Transferring an investment property on divorce

Question

I own an investment property in Ballarat jointly with my ex partner (purchased 3 years ago), and part of the settlement arrangement is that I transfer the ownership to her 100%.
What process is involved to implement this & is their stamp duty implications in doing so?

Answer

There is no CGT event for you, any CGT liability stays with your partner as if she owned it 100% right from the start instead of only 50%. Section 126-5 ITAA 1997
https://www.ato.gov.au/law/view/document?docid=PAC/19970038/126-5

In Victoria there is no stamp duty payable on the transfer between spouses on divorce
https://www.sro.vic.gov.au/content/breakdown-marriage-and-domestic-relationships-transfer-1

So you have nothing to worry about but when the value of the assets are measure the value of this house should be reduced by the inevitable CGT payable on capital gains to date even though it will not be payable until the property is sold.

Of course you will need a solicitor to draw up a binding agreement and organise the transfer of the title.

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