Transferring Real Estate in a Divorce: Deeds, Transfer Taxes and Filing Requirements

Real Estate Transfers

When one spouse receives the marital home or other real estate in a divorce, transferring ownership often requires a new deed. But preparing and signing the deed may not be the only step.

Many states impose a real estate transfer tax, documentary tax, conveyance fee, or similar charge when real property changes ownership. Transfers between spouses as part of a divorce are often exempt, particularly when the transfer is made pursuant to the divorce case, a court order, or a settlement agreement. However, the rules vary considerably by state.

Some states have no real estate transfer tax at all. Others provide an exemption for transfers between spouses or transfers made as part of a divorce. In some states, an exemption applies only if specific requirements are met, such as transferring the property pursuant to a divorce order or agreement or receiving no consideration in exchange for the property.

In addition, a transfer that is exempt from tax may still require a transfer tax return, exemption form, affidavit, or other document when the deed is recorded.

Divorce Property Transfers by State

The table below provides a state-by-state overview of deeds commonly used to transfer real estate between spouses in a divorce, real estate transfer taxes and exemptions, required transfer forms, and important state or local filing requirements.

Note: Real estate transfer tax laws and local recording requirements can change. The information below is intended as a general guide to transfers between spouses as part of a divorce. Additional requirements may apply based on the circumstances of the transfer and the location of the property.

State Divorce Property Transfer Details
Alabama

Transfer Tax: Exemption is conditional; transfer tax may apply

Form: Real Estate Sales Validation Form (Form RT-1)

What to Know: No blanket divorce or spousal exemption was identified; ordinary recordation-tax rules may apply.

Alaska

Transfer Tax: No statewide real estate transfer tax

Arizona

Transfer Tax: No statewide real estate transfer tax

Form: Affidavit of Property Value

Arkansas

Transfer Tax: Divorce transfer exemption

Exemption: 26 CAR § 166-102(1) (instrument from one party in divorce action to the other as division of marital property).

Form: Affidavit of Compliance Form

California

Transfer Tax: Divorce transfer exemption

Exemption: Cal. Rev. & Tax. Code § 11927. Statute also requires a written exemption recital signed by either spouse.

Form: Preliminary Change of Ownership Report (BOE-502-A)

What to Know: The divorce exemption should be recited in the deed. Some charter cities may impose separate local transfer taxes.

Colorado

Transfer Tax: Divorce transfer exemption

Exemption: Colo. Rev. Stat. § 39-13-104(1)(l)

Form: Real Property Transfer Declaration (TD-1000)

What to Know: Several municipalities impose their own real estate transfer taxes, including Aspen, Avon, Breckenridge, Crested Butte, Frisco, Gypsum, Minturn, Ophir, Snowmass Village, Telluride, Vail, and Winter Park. Local rates, exemptions, and forms vary. For example, Avon requires an exemption application for exempt transfers and specifically recognizes transfers involving a decree of dissolution.

Connecticut

Transfer Tax: Spousal transfer exemption

Exemption: Conn. Gen. Stat. § 12-498(a)(17) (transfers between spouses)

Form: Connecticut Real Estate Conveyance Tax Return (Form OP-236)

What to Know: Municipal conveyance tax is part of the state conveyance-tax system.

Delaware

Transfer Tax: Spousal/divorce transfer exemptions

Form: Realty Transfer Tax Return and Affidavit of Gain and Value (RTT-TAX)

What to Know: Transfers between spouses or former spouses in connection with divorce may qualify for an exemption. New Castle County requires its own Realty Transfer Tax Affidavit for all county properties and an Affidavit of Exemption when applicable; that exemption form specifically includes “Husband & Wife/Divorce.” Property in the City of Wilmington may also require the Wilmington Realty Transfer Tax Exemption Affidavit.

District of Columbia

Transfer Tax: Divorce transfer exemption

Exemption: D.C. Code § 42-1102(26)

Form: ROD 4 — Claim of Exemption from Recordation and/or Transfer Taxes

Florida

Transfer Tax: Divorce transfer exemption

Exemption: Fla. Stat. § 201.02(7); marital-home limitation

Local Form: Miami-Dade Property Transfer Information Form

What to Know: The divorce exemption applies to the marital home. Miami-Dade has a separate Property Transfer Information Form that specifically asks whether the transfer is a “Marital home” transfer pursuant to a divorce decree. Miami-Dade also has a surtax on certain taxable non-single-family transfers.

Georgia

Transfer Tax: Divorce transfer exemption

Exemption: O.C.G.A. § 48-6-2(a)(5) (transfer between husband and wife in connection with divorce)

Form: Real Estate Transfer Tax Declaration (Form PT-61)

Hawaii

Transfer Tax: Divorce transfer exemption

Exemption: HRS § 247-3(4) (husband/wife with nominal consideration); divorce transfer also documented on Form P-64B.

Form: Exemption from Conveyance Tax (Form P-64B)

Idaho

Transfer Tax: No statewide real estate transfer tax

Illinois

Transfer Tax: No specific statewide divorce/spousal exemption identified

Form: Illinois Real Estate Transfer Declaration (Form PTAX-203)

What to Know: Local transfer taxes and stamp requirements may apply in addition to the statewide system. Chicago expressly exempts a court-ordered transfer of the couple's primary residence from one spouse to the other resulting from divorce or legal separation under Chicago Municipal Code § 3-33-060(P). Evanston has its own transfer tax and exempts transactions in which the deed is pursuant to a court decree, although an exemption transaction fee applies. Joliet also has its own transfer-tax system and requires a $0 transfer-tax stamp for exempt deeds; the applicable exemption must be stated in the deed or claimed on the City's Declaration/Exemption Form. Cook County also has county-level transfer-tax requirements.

Indiana

Transfer Tax: No statewide real estate transfer tax

Form: Sales Disclosure Form (State Form 46021)

Iowa

Transfer Tax: Divorce transfer exemption

Exemption: Iowa Code § 428A.2 (divorce-related exemption; use exact applicable subsection in deed/statement)

Form: Real Estate Transfer Declaration of Value (DOV) 57-006

Kansas

Transfer Tax: No statewide real estate transfer tax

Kentucky

Transfer Tax: Divorce transfer exemption

Exemption: KRS § 142.050(7)(e) (between husband and wife as part of the divorce proceeding).

Louisiana

Transfer Tax: No statewide real estate transfer tax

Maine

Transfer Tax: Divorce transfer exemption

Exemption: 36 M.R.S. § 4641-C(4) (deeds between spouses in divorce proceedings)

Form: Real Estate Transfer Tax Declaration (RETTD); deed may be unnecessary if decree/abstract recorded

Maryland

Transfer Tax: Spousal transfer exemption

Exemption: Md. Tax-Prop. § 12-108(d) and § 13-403

Form: Spousal exemption: Md. Tax-Prop. § 12-108(d) (state/recordation) and § 13-403 (county transfer tax).

What to Know: Counties/Baltimore City may impose local transfer tax.

Massachusetts

Transfer Tax: Exemption is conditional; transfer tax may apply

What to Know: Nantucket and Martha's Vineyard have separate Land Bank transfer-fee systems and specific divorce-related exemptions. Nantucket uses Form K — Purchaser's Claim of Exemption “K” — Dissolution of Marriage for a transfer consisting of the division of marital assets and requires the applicable court order and any incorporated separation or property-settlement agreement. Martha's Vineyard uses Form LB2, Affidavit Claiming Basis For Exemption From Transfer Fee; exemption (k) specifically covers a transfer consisting of the division of marital assets.

Michigan

Transfer Tax: Exemption is conditional; transfer tax may apply

Form: Property Transfer Affidavit (Form 2766 / L-4260)

What to Know: Transfer tax can depend on the transaction. When an exemption applies, the applicable state and county exemption authorities should be stated on the deed.

Minnesota

Transfer Tax: Divorce transfer exemption

Exemption: Minn. Stat. § 287.22(14)

Form: Electronic Certificate of Real Estate Value (eCRV)

Mississippi

Transfer Tax: No statewide real estate transfer tax

Missouri

Transfer Tax: No statewide real estate transfer tax

Montana

Transfer Tax: No statewide real estate transfer tax

Form: Realty Transfer Certificate (Form RTC)

Nebraska

Transfer Tax: Spousal transfer exemption

Form: Real Estate Transfer Statement, Form 521

What to Know: The spousal exemption requires no actual consideration.

Nevada

Transfer Tax: Divorce transfer exemption

Exemption: NRS § 375.090(6) (divorce-related transfer exemption).

Form: Declaration of Value

What to Know: County components/rates vary within the state RPTT framework.

New Hampshire

Transfer Tax: Divorce transfer exemption

Form: Real Estate Transfer Tax Declaration of Consideration (Purchaser) (Form CD-57-P); Real Estate Transfer Tax Declaration of Consideration (Seller) (Form CD-57-S)

What to Know: The divorce exemption applies when the transfer is pursuant to a final divorce or nullity decree.

New Jersey

Transfer Tax: Spousal/divorce transfer exemptions

Form: Affidavit of Consideration for Use by Seller (Form RTF-1)

What to Know: Transfers between spouses may qualify for an exemption; applicable recording requirements should be followed as part of the divorce transfer.

New Mexico

Transfer Tax: No statewide real estate transfer tax

New York

Transfer Tax: Exemption is conditional; transfer tax may apply

Form: Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax (Form TP-584); Real Property Transfer Report (Form RP-5217-PDF)

Local Form: NYC ACRIS / Real Property Transfer Tax filing

What to Know: No blanket divorce exemption. Taxable consideration can include relinquished marital rights. New York City has its own additional transfer-tax system.

North Carolina

Transfer Tax: Exemption is conditional; transfer tax may apply

What to Know: Divorce itself does not create a blanket exemption. Gift/no-consideration rules may apply. A 1% local land-transfer tax is currently levied in Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans, and Washington Counties. Local recording requirements may also apply; for example, Camden requires an Affidavit of Consideration or Value, and Dare County may require a land-transfer number before recording.

North Dakota

Transfer Tax: No statewide real estate transfer tax

Form: Consideration/exemption statement goes on deed

Ohio

Transfer Tax: Divorce/court-order transfer exemption

Exemption: Ohio Rev. Code § 319.54(G)(3)(f) — transfer pursuant to court order

Form: Statement of Reason for Exemption From Real Property Conveyance Fee (DTE 100EX)

What to Know: A transfer pursuant to the divorce court order is exempt. County processing requirements can vary. Cuyahoga County requires the DTE 100-EX to be accompanied by its Exemption Verification Questionnaire and may require supporting documentation substantiating the claimed exemption.

Oklahoma

Transfer Tax: Spousal transfer exemption

What to Know: The spouse exemption requires no actual consideration.

Oregon

Transfer Tax: No statewide real estate transfer tax

Local Form: Washington County J.18 — Transfers Between Spouses Due to Court Order

What to Know: Oregon has no statewide real estate transfer tax, but Washington County has a grandfathered local transfer tax. Washington County specifically exempts a transfer between spouses resulting from a court order or divorce settlement agreement and provides Form J.18 — Transfers Between Spouses Due to Court Order.

Pennsylvania

Transfer Tax: Spousal/divorce transfer exemptions

Form: Realty Transfer Tax Statement of Value (REV-183)

Local Form: Philadelphia Real Estate Transfer Tax Certificate

What to Know: Pennsylvania provides spousal/divorce exemptions subject to the applicable conditions. Philadelphia has its own realty transfer tax and additional city transfer-tax paperwork, so a transfer involving Philadelphia property should be checked under both the state and city rules.

Rhode Island

Transfer Tax: Exemption is conditional; transfer tax may apply

What to Know: No specific spouse/divorce exemption was identified; tax may apply unless another exemption applies.

South Carolina

Transfer Tax: Spousal/divorce transfer exemption

Exemption: S.C. Code § 12-24-40(4)

Form: Affidavit showing value of realty required when applicable

What to Know: County-collected deed recording fee under state-law framework.

South Dakota

Transfer Tax: Spousal transfer exemption

Exemption: SDCL § 43-4-22(17)

Form: Certificate of Real Estate Value (PT 56)

Tennessee

Transfer Tax: Divorce transfer exemption

Exemption: Tenn. Code Ann. § 67-4-409(a)(1)(C)(v) (domestic decrees/deeds adjusting property rights between divorcing parties).

Texas

Transfer Tax: No statewide real estate transfer tax

Utah

Transfer Tax: No statewide real estate transfer tax

Vermont

Transfer Tax: Spousal transfer exemption

Exemption: 32 V.S.A. § 9603(5); spouse transfer requires no actual consideration

Form: Property Transfer Tax Return (Form PTT-172)

What to Know: The spouse exemption requires no actual consideration; qualifying divorce-related court-order transfers may also be exempt.

Virginia

Transfer Tax: Divorce transfer exemption

Exemption: Va. Code § 58.1-811(A)(14) — transfer pursuant to divorce/separation decree or written instrument incident thereto.

What to Know: Transfers pursuant to a divorce decree or written instrument incident to divorce are exempt. The statewide exemption also covers the local recordation-tax layer.

Washington

Transfer Tax: Spousal/divorce transfer exemptions

Exemption: WAC 458-61A-203(2) (transfer between spouses in fulfillment of a settlement agreement incident to dissolution/legal separation).

Form: Real Estate Excise Tax Affidavit

What to Know: State and local REET use the same system; the divorce exemption is claimed through the REET Affidavit.

West Virginia

Transfer Tax: Divorce transfer exemption

Exemption: W. Va. Code § 48-7-109

Form: Certificate of Transfer

What to Know: County deed-tax component/add-on under state system.

Wisconsin

Transfer Tax: Spousal/divorce transfer exemption

Exemption: Wis. Stat. § 77.25(8m); Wis. Admin. Code Tax § 15.05(4)

Form: Real Estate Transfer Return (RETR)

Wyoming

Transfer Tax: No statewide real estate transfer tax

Form: Statement of Consideration

Local Real Estate Transfer Taxes Can Also Apply

State law is not always the end of the story. Some counties and municipalities impose their own real estate transfer taxes or recording requirements.

For example, special local requirements may apply to property located in Chicago and Cook County, Philadelphia, Miami-Dade County, Nantucket, Martha's Vineyard, certain Colorado municipalities, and several North Carolina counties.

A state exemption does not always eliminate every local filing requirement. A locality may require an additional transfer form, exemption affidavit, certificate, declaration, or approval before the deed can be recorded.

That is why the location of the property, not simply the state, is important when preparing a deed as part of a divorce.

An Exempt Transfer May Still Require a Transfer Tax Form

Being exempt from transfer tax does not necessarily mean that a transfer is exempt from transfer tax reporting.

For example, a state may exempt a deed transferring property from one spouse to the other as part of the divorce but still require the parties to file a transfer declaration identifying the transaction and claiming the exemption.

Depending on the state and locality, documents accompanying a divorce-related deed may include:

  • A real estate transfer tax return or declaration
  • A statement or affidavit claiming an exemption
  • A property value or consideration statement
  • A copy of or reference to the divorce decree
  • A county or municipal transfer form
  • An exemption certificate or local approval

The applicable exemption may also need to be stated directly on the deed.

Not Every Divorce Property Transfer Is Automatically Exempt

A transfer between spouses should not automatically be assumed to be tax-free simply because it is being made as part of a divorce.

Some states expressly exempt transfers made pursuant to a divorce order or property settlement. Others exempt transfers between spouses only when specific requirements are met. Still others base the exemption on whether money or other consideration is exchanged.

For example, an exemption may depend on:

  • Whether the parties are still married when the deed is recorded
  • Whether the transfer is required by a divorce decree or settlement agreement
  • When the deed is signed or recorded in relation to the divorce proceeding
  • Whether the property was acquired during the marriage
  • Whether one spouse gives the other consideration for the property
  • Whether the property is the marital residence

If the requirements for an exemption are not satisfied, real estate transfer tax may be due even though the transfer occurs because of a divorce.

A Quitclaim Deed Does Not Determine Whether Transfer Tax Is Due

A quitclaim deed is commonly used to transfer one spouse's interest in real estate to the other spouse as part of a divorce. However, using a quitclaim deed does not itself make the transfer exempt from real estate transfer tax.

A quitclaim deed describes the type of deed and the interest being conveyed. Transfer tax treatment depends on the circumstances of the transfer and the laws of the state and locality where the property is located.

The same transfer tax and recording requirements can therefore apply regardless of whether the appropriate instrument is called a quitclaim deed, grant deed, interspousal transfer deed, or another type of deed.

Transferring Real Estate as Part of a Divorce

When the spouses agree that one spouse will keep jointly owned real estate, the divorce paperwork should address that property division. A deed may also be needed to transfer the other spouse's ownership interest and update the land records.

Before recording a divorce-related deed, determine:

  1. Whether a real estate transfer tax applies
  2. Whether the transfer qualifies for a spousal or divorce exemption
  3. Whether the exemption must be stated on the deed
  4. Whether a state transfer tax or property transfer form must accompany the deed
  5. Whether the county or municipality has additional transfer requirements