Transferring Property to Family Members (Gifts & Spousal Transfers) in WA

For many people in Western Australia, whether getting married, helping their children enter the property market, finalising a divorce settlement or restructuring family assets, they may choose to transfer property to a family member. This practice is more common than many people realise.

Some may think that transferring a property to a family member can be straightforward, simple and tax-free, however, in reality this process involves strict legal requirements, potential stamp duty, and possible tax consequences.

Understanding how these transfers work and where professional support fits in can help you avoid delays, unexpected costs, and legal complications.

Why People Transfer Property to Family Members

Here are a few common scenarios where people transfer property to their family members:

Adding a spouse or partner to the property title after marriage or de facto partnership
Gifting a property (or a share of it) to a child or other family member
Transferring ownership as part of a divorce or separation settlement
Estate planning or asset restructuring within the family

Regardless of intent, the transfer is treated as a formal change of ownership and not an informal family arrangement. The process itself is governed by Western Australia property law and state revenue rules.

Types of Family Property Transfers in Western Australia

Adding a Spouse to the Property Title

One of the most common family transfers in Western Australia is adding a spouse or de facto partner to the property title.

In many cases, stamp duty may be exempt when:

The property is the primary residence, and
The transfer is between spouses or de facto partners

However, these exemptions are not automatic.

The correct documentation must be prepared and lodged, and eligibility conditions must be met. If the property is an investment property, or if ownership shares are changing in a specific way, duty may still apply.

This is where a settlement agent becomes important, ensuring the transfer is processed the right way and exemption eligibility is assessed before documents are submitted.

Gifting Property to a Child or Family Member

Gifting property to a child is usually done to help them get ahead financially or as part of long-term estate planning.

However, one critical point often surprises families:

Stamp duty still applies even if no money changes hands.

In Western Australia, stamp duty is calculated based on the market value of the property at the time of transfer, not the purchase price, which means:

A “gifted” property is treated the same as a sale for duty purposes
A formal market valuation is often required
Significant upfront costs can arise unexpectedly

Additionally, gifting property may trigger capital gains tax (CGT) if the property is not the family home. While settlement agents facilitate the transfer process, CGT advice must come from a qualified tax professional.

Property Transfers After Divorce or Separation

Property transfers following a divorce or separation are common and often emotionally charged.

Generally, property transfers made pursuant to a Family Court order or binding financial agreement are exempt from stamp duty in WA. However:

The exemption only applies if the correct legal documentation is in place
Court orders or agreements must be finalised before settlement can proceed
Timing and compliance are very important

It is also important to note that settlement agents do not provide legal advice on divorce matters. Their role only begins once the legal requirements are met, ensuring the property transfer is completed accurately and efficiently.

Understanding the Tax Implications

One of the biggest pain points for families is discovering tax consequences after a transfer has begun.

Capital Gains Tax (CGT)

This may apply when:

The property is an investment property
The transfer is a gift or part-ownership transfer
The property was not the primary residence for the entire ownership period

Even if no money is exchanged, the Australian Taxation Office may treat the transfer as a disposal at market value.

Important: Settlement agents cannot provide tax advice. For CGT implications, it’s essential to speak with a qualified accountant or tax adviser before proceeding.

The Role of a Settlement Agent in Family Transfers

Family property transfers still require the same level of care and compliance as standard property sales. Therefore, using a professional settlement agent will make the process easier and more efficient.

A professional settlement agent in Perth will:

Prepare and lodge all required transfer documents
Coordinate with banks, lawyers, and government authorities
Ensure stamp duty is assessed correctly
Manage settlement timelines and compliance with WA land title requirements

Working with experienced settlement agents in Perth helps ensure that emotional family decisions don’t turn into costly administrative errors.

You can learn more about professional support by visiting Strategic Settlements, specialists in property transfers across Western Australia.

Family Property Transfers: Mistakes to Avoid

Families often encounter issues because they assume the process is simpler than it really is. Common mistakes include:

Assuming family transfers are automatically stamp duty-free
Failing to consider CGT implications before transferring ownership
Not obtaining required court orders or probate before settlement
Using generic or incorrect documentation
Delaying professional advice until costs have already been incurred

These mistakes can lead to rejected transfers, penalties, and unexpected financial stress. Therefore, before proceeding with the transfer, it is advised to do thorough research or engage a professional settlement or conveyancing agent in Perth.

Why Professional Guidance Matters

While settlement agents do not provide legal or tax advice, they play an important role in making sure that:

The transfer process complies with WA property laws
Documentation is accurate and complete
Settlement occurs smoothly and on time

For legal matters (such as divorce settlements or estate law) and tax advice (including CGT), families should always consult qualified professionals before instructing a settlement agent to proceed.

Final Thoughts: Plan Before You Transfer

Transferring property to a family member is rarely “just paperwork.” Even the most well-intentioned transfers can carry hidden costs and legal requirements if not handled correctly.

Before proceeding, take the time to:

Understand stamp duty and tax implications
Obtain legal or tax advice where required
Engage an experienced settlement agent in Perth to manage the transfer process

If you’re considering a family property transfer, get a quote for your settlement services or contact us for assistance with your property settlement. The right guidance upfront can save you time, money, and unnecessary stress.