PROPERTY SETTLEMENT AFTER DIVORCE NSW: STAMP DUTY EXEMPTIONS

When you transfer property as part of a divorce or separation settlement in NSW, you may be entitled to a full stamp duty exemption under Section 68 of the Duties Act 1997. This can save you $20,000 to $50,000 or more. However, the exemption only applies if your property settlement is formalised through Consent Orders or a Binding Financial Agreement. This guide explains who qualifies, how to apply, and the common mistakes that cost people thousands.

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What Is a Settlement Adjustment Sheet?

Divorce and separation are already emotionally and financially challenging. The last thing you need is an unexpected stamp duty bill of $30,000+ when transferring property to finalise your settlement.

 The good news is that NSW law provides a full stamp duty exemption for property transfers between separating couples, but only if specific legal requirements are met. If you simply transfer the property without proper documentation, you could be liable for the full stamp duty amount.

This guide explains how to qualify for the exemption, what documents you need, and how a property lawyer or conveyancing lawyer can help you navigate the process while protecting your financial and legal interests.

WHAT IS THE STAMP DUTY EXEMPTION FOR DIVORCE PROPERTY SETTLEMENTS?

Under Section 68 of the Duties Act 1997 (NSW), no stamp duty is payable on transfers of “matrimonial property” or “relationship property” when:

  • A marriage has been dissolved, annulled, or has broken down irretrievably, OR
  • A de facto relationship has ended

The exemption applies to transfers to:

Eligible Recipients

Examples

Either party to the marriage/relationship

Transferring the family home to your ex-spouse as part of the settlement

Both parties

Retaining joint ownership in different proportions

Children of either party

Transferring an investment property to adult children

A trustee for the children

Transferring property to a family trust for the children’s benefit

Key Point: The exemption is not automatic. You must formalise your property settlement through proper legal channels AND apply to Revenue NSW for the exemption.

HOW MUCH CAN YOU SAVE?

The stamp duty exemption can save you tens of thousands of dollars. Here’s what you’d pay WITHOUT the exemption:

Property Value

Stamp Duty Payable (Without Exemption)

$500,000

$17,990

$750,000

$29,240

$1,000,000

$40,490

$1,250,000

$54,240

$1,500,000

$68,240

$2,000,000

$95,490

Rates current as of 1 July 2025. Based on standard NSW transfer duty rates.


Example: Sarah and Michael are divorcing. Their Sydney home is worth $1.2 million. Michael is keeping the house and “buying out” Sarah’s share. Without the exemption, Michael would pay approximately $52,000 in stamp duty. With proper Consent Orders and an exemption application, he pays $0.

ELIGIBILITY REQUIREMENTS: WHO QUALIFIES?

To qualify for the stamp duty exemption in NSW, you must meet ALL of the following requirements:

The Relationship Has Ended

The exemption applies to:

  • Marriages that have been dissolved (divorced), annulled, or broken down irretrievably
  • De facto relationships that have ended (must have lived together for at least 2 years, OR have a child together, OR made substantial financial contributions)
  • Domestic relationships under the Property (Relationships) Act 1984 (NSW)

The Property is “Matrimonial Property” or “Relationship Property”

This includes:

  • The family home
  • Investment properties
  • Commercial properties
  • Vacant land
  • Any property owned by either or both parties during the relationship

The Transfer is Formalised Through Legal Documentation


This is the critical requirement. The transfer must be made in accordance with ONE of the following:

Document Type

What It Is

Typical Cost

Consent Orders

Court orders that formalise your agreement, approved by the Federal Circuit and Family Court

$2,000–$5,000 (legal fees) + $195 filing fee

Binding Financial Agreement (BFA)

A private contract between parties, certified by independent lawyers

$3,000–$8,000+ (requires separate lawyers)

Court Order

Orders made by a court after a contested hearing

$20,000+ (if litigated)

Important: Informal agreements, even written ones, generally DO NOT qualify for the exemption. If you transfer property based on a handshake deal or informal written agreement, you will likely pay full stamp duty.

CONSENT ORDERS VS BINDING FINANCIAL AGREEMENT: WHICH IS BETTER?

Both options will qualify you for the stamp duty exemption, but they have different advantages:

Factor

Consent Orders

Binding Financial Agreement

Cost

Generally cheaper ($2,000–$5,000)

More expensive ($3,000–$8,000+)

Privacy

Filed with court (but not publicly searchable)

Private document

Enforceability

Highly enforceable court order

Can be challenged in limited circumstances

Legal advice required

Recommended but not mandatory

Each party MUST have independent legal advice

Processing time

2–6 weeks for court approval

Immediate once signed

Best for

Most separating couples

Complex assets, business interests, high-net-worth

HOW TO APPLY FOR THE STAMP DUTY EXEMPTION

Once you have your Consent Orders or BFA in place, follow these steps to secure the stamp duty exemption:

Step 1: Gather Your Documents

You will need:

  • Certified copy of Consent Orders (sealed by the court) OR original Binding Financial Agreement
  • Completed Transfer form (Form 01T), your conveyancer prepares this
  • Completed ODA 069 “Application for Exemption or Refund – Break-up of a Marriage or De Facto Relationship”
  • Proof of identity for each party

Step 2: Complete Form ODA 069

This Revenue NSW form requires you to:

  • Confirm the marriage/relationship has ended
  • Identify the property being transferred
  • Confirm the transfer is in accordance with your Consent Orders or BFA
  • Provide details of both parties

Step 3: Lodge with Revenue NSW

Your conveyancer will lodge the application through the electronic conveyancing platform (PEXA) or directly with Revenue NSW.

Step 4: Receive Exemption Confirmation Once approved, Revenue NSW will confirm the exemption. The transfer can then be registered with NSW Land Registry Services without payment of stamp duty.

HOW A CONVEYANCING LAWYER CAN HELP

  • Relying on an informal agreement:  Many couples agree verbally or in writing to “sort it out later” without formalising through Consent Orders or a BFA. This means NO stamp duty exemption.
  • Transferring before Consent Orders are approved: The exemption requires the legal documentation to be in place. If you transfer the property before your Consent Orders are sealed by the court, you may not qualify.
  • Not applying for the exemption: The exemption is not automatic. You must apply to Revenue NSW with the correct forms and documentation.
  • Incorrect or incomplete forms: Revenue NSW can reject applications with errors, causing delays and complications.
  • Forgetting about other properties: The exemption can apply to multiple properties transferred as part of the settlement. Make sure all transfers are properly documented.
  • Missing the refund deadline:  If you paid stamp duty and later obtained Consent Orders, you can apply for a refund but only within 5 years.

HOW A CONVEYANCING LAWYER CAN HELP

A conveyancing lawyer plays a specific role in divorce property settlements, separate from (but working alongside) your family lawyer:

What Your Family Lawyer Does

What Your Conveyancing Lawyer Does

Negotiates the property settlement

Prepares the property Transfer documents

Draft Consent Orders or BFA

Completes the stamp duty exemption application

Handles court filings

Coordinates with banks for mortgage discharge/refinancing

Advises on family law matters

Lodges the transfer with NSW Land Registry Services

At CMI Legal, our conveyancing team works closely with family lawyers (yours or one we recommend) to ensure a seamless process.

FAQS ABOUT STAMP DUTY EXEMPTIONS FOR DIVORCE PROPERTY SETTLEMENTS

You can issue a Notice to Complete, giving the vendor at least 14 days to settle. If they still fail to settle, you can terminate the contract, recover your deposit, and sue for damages caused by the delay.

An informal agreement, even a detailed written one, generally does not qualify for the stamp duty exemption. You need Consent Orders approved by the Family Court or a properly executed Binding Financial Agreement to secure the exemption.

Yes. The exemption applies to de facto relationships that have ended, provided you meet the relationship requirements (generally 2+ years living together, or a child together, or significant financial contributions).

 Yes. If you paid stamp duty on a property transfer and later obtained Consent Orders or a BFA, you can apply to Revenue NSW for a refund within 5 years of the original payment.

Yes. The exemption applies to “matrimonial property” or “relationship property,” which includes investment properties, commercial properties, and vacant land, not just the family home.

For most property settlements involving real estate, yes. Your family lawyer handles the Consent Orders or BFA. Your conveyancing lawyer handles the actual property transfer, stamp duty exemption application, and settlement. Some firms (like CMI Legal) can assist with both.

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