How do I transfer home to de facto partner after separation

[Jayceman]

I am in joint ownership of a house with a joint mortgage on it. My partner is the principal earner and pays the mortgage.My partner and I are no longer in a relationship. I intend to purchase another home with my new partner.
The mortgage is $200,000. The value of the house is $380,000. I am willing to accept $50,000 for my share.(for personal reasons).
How do I sign over my rights in the house.
Is there any stamp duty payable,
will the bank accept this as they hold the mortgage.
Are there any othe tax implications.

 

[Raddles]

Hi there
can I suggest you speak with a legal practitioner.
There have been some changes to the family law scene more recently where defacto partners can now go to the family court/federal magistrates court and have the same benefits as married parties to have consent orders which regulate the property split (rather than having to go through the state court system).
If you can agree to have some consent orders drawn up - there is a benefit from a stamp duty and capital gains tax point of view - you can actually the defer the payment of such taxes to the next sale. You have a legal practitioner then draw up the transfer pursuant to the orders. The bank will obviously have to be involved in the process - but they obviously prefer things to get sorted rather than have to sell a property where the mortgage is not being paid.
thanks

 

[Boyler_Room]

I know in South Australia where there is a matrimonial breakdown, the home can be transferred to one of the parties involved with a pay out from the other party (for whatever agreed amount) that incurs no stamp duty. This involves a transfer of title and will require the mortgage to be varied/refinanced. This requires that you spent a specified period in a de facto relationship.

In this case, your partner would need to take out a mortgage for $250,000 (200 + your 50) to cover it in their own name.

I am not sure on the CGT implications at this point. Definitely worth speaking to your solicitor & accountant about these issues.

Cheers
BR