Removing a person from title and dissolving trusts

Looks like we're making progress on our property settlement. We will need to remove one of us from each property we own, and for those in trusts, the properties will be rolled into my personal name.

Does anyone know the ballpark costs for either? Are there government fees to remove a person on title?

Also, to remove an owner from title, does the bank holding the mortgage over the property have to sign off on the changes prior to the forms going to the land titles office? If so, how does this work when neither of us have sufficient borrowing capacity until the portfolio is split?

 

Trustees?

Removing trustees could result in full stamp duty in nsw depending on the structure of the trust.

Changing names on titles will need a full loan application too for loans and s reassessment for serviceability so make sure you can service first.

If moving properties from trustees to personal names there may be cgt concessions for relationship breakdowns. I don't know about stamp duty as it will depend on the state.

 

Thanks Terry. I've had accounting and legal advice that we won't incur any duties/taxes as they were matrimonial assets.

Neither of us can service our current portfolio so what happens in the chicken and egg scenario?

 

Sell? That's the usual result of divisions of assets where the parties can't afford to refinance individually.

 

tax advice i think you mean.

you would have to sell in that case or keep as is.

 

ive had both tax and legal advice.

That would be devastating if I had to sell everything. He's keeping our home so I'd walk away with nothing much except a massive tax bill.

 

This is why you need to factor in any CGT liability as part of the settlement. When you take title you take any CGT liability in full.

Speak to your lender, but it unlikely they will allow title to be changed without reassessment, especially for personal borrowers.

 

Yes, the tax implications have been looked at, based on what we each keep as per the proposed court order and what I would need to sell in order to refinance a few remaining properties. However if we are forced to sell everything rather than being able to transfer ownership and then remortgage it all, the tax bill would be horrendous.

 

Check with the mortgagee asap and report back.

Some do allow concessions for divorce I think