A Real Estate Advisor’s Guide to Avoiding Unexpected Costs, Protecting Your Assets, and Navigating the Fine Print

Divorce isn’t just emotional—it’s also legal, financial, and full of complicated details that can quietly eat into your wealth. And one of the most overlooked (yet expensive) of these details?
Real estate transfer taxes.

Far too often, women discover these costs at the last minute—after they’ve signed the divorce agreement, transferred the deed, or even moved back in. At that point, it’s no longer about strategy—it’s damage control.

This guide is designed to help you avoid that. As real estate advisors who work closely with women navigating divorce, we’re here to give you the clarity and confidence you deserve—especially when it comes to your biggest asset: your home.

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What Is a Real Estate Transfer Tax?

A real estate transfer tax is a fee imposed by the city, county, and often the state when property ownership changes hands.

Most people associate it with selling a home. But here’s where it’s especially important in divorce:
Even if the property isn’t sold to an outside buyer, you’ll still owe transfer tax when you move from joint to sole ownership. There is no exemption—this tax always applies. The only question is who pays it (you, your ex, or shared), which should be clearly negotiated in your divorce agreement.

In New York, for example, transfer taxes can range from 0.4% to over 2.6% depending on where the property is and how much it’s worth. On a million-dollar home, that could mean tens of thousands of dollars.

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Common Misconception: Divorce = No Transfer Taxes

Many assume that divorce exempts you from transfer taxes. That is false. There are no exemptions.

New York, for example, makes it explicit: a conveyance from one spouse to another, even under a separation or divorce agreement, is subject to transfer tax. The law presumes that the “consideration” for the transfer—including the relinquishment of marital rights—is equal to the fair market value of the interest in the property being conveyed.

In other words: transfer tax is always owed. The only flexibility you have is negotiating which spouse pays it as part of your divorce settlement.

This is different from other taxes that may be exempt when transfers are “incident to divorce”—like income tax or capital gains deferral. Transfer taxes are unique: they cannot be avoided.

“I thought transferring the deed into my name after the divorce was just paperwork. I didn’t realize there was a $30,000 tax bill waiting for me. If Heather hadn’t flagged it early, I would have been blindsided. Knowing to negotiate who paid it saved me from an expensive mistake.”
— Former client

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4 Smart Steps to Handle Transfer Taxes During Divorce

1. Bring in a Real Estate Advisor Early

Your advisor should be part of your divorce team from day one, right alongside your attorney and financial planner.
We understand the legal language that can trigger a taxable event and work with your attorney to structure the transfer in the least costly way possible.

Pro tip: Ask your team, “Who’s reviewing the property transfer language for potential tax exposure—and are we addressing who will pay the transfer tax?”

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2. Get It in Writing—Clearly

Your divorce agreement should explicitly state who is responsible for the transfer tax when the property changes hands. Vague language or verbal understandings won’t cut it. Since the tax itself is unavoidable, clarity on who pays it is the only way to prevent a surprise bill.

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3. Pay Attention to Timing

Timing still matters—but not because of exemptions. The transfer tax will always apply. However, executing the deed transfer in close connection with the divorce judgment ensures the cost can be fairly allocated and negotiated as part of your settlement. Delay may leave you paying it alone later.

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4. Don’t Just Sign a Quitclaim Deed Without Review

Quitclaim deeds are common during divorce but they don’t avoid transfer taxes. The tax applies regardless. The quitclaim is simply the instrument of transfer; the obligation to pay the tax is separate. What matters is that your settlement agreement specifies who covers that cost.

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It’s Not Just About Transfer Taxes, It’s About the Full Financial Picture

Too often, we see women accept “the house” during divorce without fully understanding the ongoing financial commitment:

• Property taxes
  
• Insurance
  
• Repairs and maintenance
  
• Future capital gains tax at resale
  

Our role isn’t to tell you what to do with your home, it’s to make sure that whatever you decide is informed, strategic, and financially sound in both the short and long term.

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Real Talk from the Field

“What I valued most was how they explained what I didn’t know to ask. The transfer tax conversation changed how I negotiated—and it saved me thousands.”
— Former client, Upper West Side

“My lawyer handled the legal side. Heather’s team handled the real-life side—what the agreement actually meant for me as a homeowner.”
— Divorce client, Westchester

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Final Thoughts from Mya

Divorce is a major life transition—and your financial future deserves thoughtful planning, not rushed decisions.

Real estate transfer taxes might seem like fine print, but trust me: they are unavoidable. The key is making sure the cost is anticipated and fairly negotiated in your divorce agreement so you’re not blindsided later.

At our firm, we guide women through these moments with clarity, compassion, and strategy. If you’re in the middle of a divorce or preparing for one, let’s talk before you transfer the deed or sign any documents.

We’ll help you:

• Understand your transfer tax obligation
  
• Negotiate who should pay it
  
• Protect your financial future
  
• Move forward with confidence
  

You don’t have to do this alone—and you don’t have to guess.