Learn about tax savings on interspousal transfers

Exclusion

Transfers of real property or legal entity interests between spouses or state registered domestic partners are excluded from change in ownership. 

Some definitions of qualified transfers include: transfers for the benefit of the spouse or state registered domestic partner, transfers to a surviving spouse or state registered domestic partner, and transfers to a former spouse or state registered domestic partner in connection to a property settlement agreement or dissolution decree.

The definition of married couples includes both same sex couples as well as opposite sex couples.

You do not need to apply to receive this benefit

There is no claim form required to be filed to establish the inter-spousal exclusion.  

However, we may request supporting documentation, such as a divorce decree, settlement agreement, or death certificate to establish the eligibility of the exclusion.

Interspousal transfers

All transfers between spouses during the marriage are excluded from reassessment. 

The vesting may be by any of the following:

• joint tenants
• tenants in common 
• community property
• community property with right of survivorship or
• in the family trust

Divorce

Transfers of ownership as a result of dissolution of marriage do not trigger reassessment. 

This includes transfers between spouses pursuant to a property settlement agreement. 

Frequently asked questions

Question: My spouse and I are on title to our house, if I give my interest to my spouse, will this trigger a reassessment?

Answer: No. All transfers between spouses during the marriage are excluded from reassessment regardless of the vesting on title. The vesting may be joint tenants, tenants in common, community property, community property with right of survivorship or in the family trust.

Question: My spouse and I are getting a divorce; we are severing our ownership vesting to tenants in common. Will this trigger a reassessment?

Answer: No. Transfers of ownership as a result of dissolution of marriage do not trigger reassessment.

Question: My spouse and I are getting a divorce, the divorce settlement agreement states we are to keep the house until our youngest child graduates from college. At that time, my ex-spouse and I may buyout each other or sell the property in the open market. Will this buyout trigger a reassessment?

Answer: No. Regardless of how title is held, the transfers between spouses pursuant to a property settlement agreement do not trigger a reassessment.

Question: My spouse and I are on title as tenants in common. We divorced and do not have a divorce settlement agreement. We agreed that we each have 50 percent interest in the property. Years later, my ex-spouse decided to give his 50% interest in the property to me. Will this result in a 50 percent reassessment.

Answer: Yes. There is no excludable relationship and there is no divorce marriage settlement agreement.