Inter-Spousal Exclusion

The inter-spousal exclusion protects the surviving spouse when a death occurs or when a spouse retains property in a divorce settlement from reassessment. The definition of married couples includes both same sex couples as well as opposite sex couples.

There is no claim form required to be filed to establish the inter-spousal exclusion. However, supporting documentation, such as a divorce decree, settlement agreement, or death certificate may be requested by the assessor to establish the eligibility of the exclusion.

From June 16, 2008 to November 5, 2008, same sex marriages performed during this period are recognized.

On June 28, 2013, same sex marriages are recognized.

Filing Requirements:
When recording the Grant Deed, Quitclaim deed, Affidavit of Death of Joint Tenant or Affidavit of Death of Trustee, complete the Preliminary Change of Ownership report, section A which provides additional information to the assessor for the type of transfer.

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

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.

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

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

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?

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

My spouse and I are on title as tenants in common. We divorced and do not have a marriage 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.

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

Is it always beneficial to claim this exclusion?

No. If you received a Proposition 8, declined in market relief during the transferred date, or the fair market value of the property is lower than your Proposition 13 factored base year value, it will be better for you to accept a new Proposition 13 base year value for the transfer. This will result in a lowered factored base year value in the long run.

I still have questions about inter-spousal transfers. Where can I find more information?

If you still have questions about inter-spousal transfers, please call the San Francisco Assessor’s Office at 415-554-5596 for more information.