There seems to be a general misunderstanding out there with investors about what happens if a spouse transfers an interest in a property to their partner spouse. Most people don't realise that the transfer will be a CGT event. There is no exemption except on the break down of a relationship. Example Isaiah and his gay spouse Mohammed own a block of land jointly as tenants in common in 50 50 shares. Isaiah wants to transfer his share of the property to Mohammed for no consideration (i.e. a gift). This is a CGT event because it is a change in legal ownership of the land. It will be assessed at market value too. Going forward Mohammed will have 2 separate interest in the property for CGT purposes, each with different cost bases. He will have the first 50% interest and the second 50% interest (it is as if he has 2 separate properties). Example Land was purchased for $500,000 with $20,000 in costs and anotehr $30,000 in costs since holding. It is now worth $1mil. They each have a 50% interest so Isaiah's share is worth $500,000. Isaiah's cost base is $275,000 (half of $550,000) and the market value is $500,000 so that is a capital gain of $225,000. Going forward Mohammed has 2 interests in the land: A which he purchased for $250,000 and B which he purchased for $1mil. When Mo sells he will have to work out the cost base on each of these interests.