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?
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
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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