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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 38616
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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Is there any stamp duty payable in the sate of Victoria

Resolved Question:

Is there any stamp duty payable in the sate of Victoria for a property transfer of title resulting from a separation/divorce settlement for a defacto relationship, cohabitation of 7 years? The title will be transferred to a party that is not joint owner on the title. Secondly, this property was not able to be negatively geared when the couple bought a second property in joint name, that they lived in and rented the original proerty they lived in first? After the settlement would the new title owner be able to claim negative gearing options if they are available to them?
Submitted: 2 years ago.
Category: Australia Law
Expert:  Leon replied 2 years ago.
Good Morning

Thank you for your question. To Introduce myself I am a sydney based Solicitor and will do my best to provide you with information to answer your question.

Before I responde can you answer the following question for me?


Do you have a signed Binding Financial Agreement or Court order from the Family Court/Federal Magistrates Court?
Customer: replied 2 years ago.
NO, there are no children involved and a Court Consent Order is pending
Expert:  Leon replied 2 years ago.
Good Afternoon

If you do not have orders or a Binding Financial Agreement then it will be seen as a Sale and you will have to pay stamp duty and if it is an investment property Capital Gains Tax as well.

the binding financial agreement, or consent orders from the court makes the transfer exempt from stamp duty and any capital gains tax is rolled over as the person who becomes the sole owner of the property is deemed to have registered at the very beginning.

So in order for you not to pay any Stamp duty you will need to enter into a binding financial agreement or prepare consent orders to be approved by the family Court of Australia/Federal magistrates Court.

I hope this is of assistance. If you have any further queries please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.


Customer: replied 2 years ago.
There was a second part to my question and that was about the negative gearing issue that you have not addressed yet
Expert:  Leon replied 2 years ago.
Good Afternoon,

If you rent the property then you are able to negative gear from the date that you become the registered proprietor.

Negative gearing is allowed when you are earning an income (rent) from the property, this allows you to then deduct all expenses incurred in order to earn that income.

I hope this is of assistance. If you have any further questions please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.

Customer: replied 2 years ago.
The problem is that in the original relationship they were not able to negatively gear the original property that they rented because they shifted some of the equity to the new property they then lived in. My question is if the titles to each of the properties are transferred individually, one to each individual in the settlement, will the rental property become able to become negatively geared by the new title owner when they are out of the relationship and have no finanacial interest in the second property?
Expert:  Leon replied 2 years ago.
Good Evening,

If the owner of the rental property has to borrow against it, for the property to be theirs and they then rent the property then it becomes negatively geared if the outgoings are greater than the income.

So if this is the case then the editor to your question is it will become negatively geared.

The rental property should have always been negatively geared even during the relationship. if it wasn't then it was because of the way the Loans over the properties was structured.

I hope this is of assistance. If you have any further questions please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.

Customer: replied 2 years ago.
I am unhappy with my credit rating being downgraded just because your response was incomplete. I believe you have been impatient with my further questioning and am not satisfied with the overall experience because of this.
Expert:  Leon replied 2 years ago.
Good Evening,

I'm sorry if you feel that I'm impatient but I'm not. I'm happy to continue and assist you.

I also do not understand what you mean by your credit rating being downgraded.

I'm happy to continue if you wish to continue with me


Customer: replied 2 years ago.
One of the emails directed me to a credit rating clearance website which threatened my future prospects to obtain credit.
Expert:  Leon replied 2 years ago.
Good Evening,

Are you saying an e-mail from me?

This is a question and enter service it can in no way impact on your credit rating.

If you still have that e-mail can you please forward it toXXX@XXXXXX.XXX and ask them to investigate because that should not have happened I have never heard of this before.

At no time have I forwarded any e-mail to you about credit ratings.
Customer: replied 2 years ago.
Yes I apologise for the misunderstanding, but it is getting too confused with the crosslinked emails from 2 questions lines I have going simultaneously. It appears the credit clearance website was an add in google that looked like it was part of your email. I have since responded with an OK rating and cleared that matter in the other email thread. Please clarify the negative gearing question. When a first home is remortgaed to enable some of the equity to be invested in a second property, even though the second property is habitated and the first property rented it can't be negatively geared, can it?
Expert:  Leon replied 2 years ago.
Good Evening,

If you mortgage for the purpose of having the investment property in your name then all expenses relating to the mortgage are tax-deductible.

If all the outgoings (mortgage interest, council rates, water rates, building insurance, etc) are greater then the income (rent) received for the property then you are negative gearing.

In relation to deduct ability of the interest of a mortgage the income tax assessment act says it is the intention of the mortgage that will determine whether you can deduct the interest.

If you borrow the money so that you can improve the house that you live in and register that mortgage on the house you rent out, the interest is not deductible.

You need to look at the purpose for the loan. If the purpose is to be able to earn an income through rent then it is deductible.

I hope this is a little clearer.

In relation to the negative rating I would request if you would also change your writing here is this question now shows 2 poor services.

I hope this is of assistance. If you have any further queries please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.


Leon, Solicitor
Category: Australia Law
Satisfied Customers: 38616
Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
Leon and other Australia Law Specialists are ready to help you

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