01 Aug I get the house in our divorce. Do I pay a transfer tax?

Q. I have a quit claim deed completed and am getting it signed. I am having my ex taken off the deed and no money involved. How do I figure out the transfer tax in New Jersey then?
— Owner

A. We’re glad you’re taking care of your financial situation and making sure all your property records are accurate.

The State of New Jersey imposes a Realty Transfer Fee (RTF) on the transfer of real
property.

There are partial and full exemptions allowed from the NJ RTF, said Gerard Papetti, a certified financial planner and certified public accountant with U.S. Financial Services in Fairfield.
.
To claim a full exemption, you need to complete Section 4 of Form RTF-1, he said.

He said the accompanying instructions for the Form RTF-1 explain that a full exemption includes Exemption (a), where the property changed hands for less than $100, or Exception (b), for circumstances when there is a divorce.

“Based on your situation, although no dollars are involved in removing your ex-spouse from the deed, you need to review your property/marital settlement agreement to determine what consideration was involved for you to be entitled to sole ownership of the real estate and if less than $100, you would qualify for Exemption (a),” he said. “To qualify for Exemption (b), you would need to record the new deed within 90 days of the divorce decree.”

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This story was originally published on Aug. 1, 2023.

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