Adding Your Spouse or De Facto Partner to Your Property Title

One of the more significant financial decisions in a marriage or in a de-facto relationship is in regard to property ownership. If you already own property, you may be considering adding your spouse or de facto partner to your property title. This process is common, but it’s important to carefully weigh the legal, financial, and personal implications before proceeding. 

The Process of Adding a Partner to the Title 

The process of adding a spouse or de facto partner to your property title in NSW is relatively straightforward but requires specific legal procedures. You will need to apply through the NSW Land Registry Services (NSW LRS), which involves submitting a Transfer of Land form and supporting documentation. This form is lodged with the Registrar-General to officially alter the title. 

Depending on the specific circumstances, there may also be a need to consider stamp duty payment. If no money changes hands (such as in the case of a marital or de facto partner transfer), you may qualify for a stamp duty exemption. However, this is not always guaranteed, and seeking legal advice or consulting with a conveyancer is recommended to ensure you meet the requirements for any exemptions. 

Financial and Tax Implications 

Adding your spouse or de facto partner to your property title can have significant financial and tax implications. One of the most crucial factors to consider is whether it will trigger a capital gains tax (CGT) event. Generally, if you gift property to your partner, it may be treated as a disposal, which could have CGT consequences. 

In addition, there could be impacts on future taxation, including how the property is treated for income tax purposes if rented or sold. The ownership structure and the percentage of interest each party holds may also affect your tax obligations. If you’re unsure about the impact of these changes, it’s advisable to consult a tax professional to ensure you understand the implications for both you and your partner. 

Estate Planning Considerations 

Adding your spouse or de facto partner to the property title can significantly affect your estate planning. If the property is in joint names, it will likely pass to the surviving owner in the event of one partner’s death, outside the terms of a will. This “right of survivorship” is a key consideration if you intend to ensure your property passes according to your wishes. 

On the other hand, if the property is in both names as tenants in common, each party’s share of the property can be distributed according to their will, giving more flexibility in estate planning. It’s essential to discuss this with a lawyer to ensure that your property title aligns with your broader estate planning goals. 

Relationship Implications 

While the financial and legal factors are critical, it’s equally important to consider the personal implications. Adding your partner to the property title can signify a deep commitment, but it also involves shared financial responsibility. In the unfortunate event of a breakup or separation, the division of the property could become a contentious issue. You should both understand the potential legal consequences, including how the property will be divided in case of a divorce or relationship breakdown. 

Conclusion 

Adding your spouse or de facto partner to your property title in NSW is a decision that requires careful thought and consideration. If you find yourself in need of assistance with this or any other legal issue, please contact the law offices of Owen Hodge Lawyers. At Owen Hodge, we are always happy to assist clients in understanding the full ramifications of any and all of your legal needs. Please feel free to call us at your earliest convenience to schedule a consultation at 1800 770 780.