When Divorce Settlements Involve Property, Wives May Not Have to Pay Stamp Duty: Supreme Court

The SC ruled that a wife who received a flat in a divorce settlement does not have to pay stamp duty, as per Section 17(2)(vi) of the Registration Act, 1908.

A couple resolved their divorce dispute through mediation. As part of the settlement, the husband gave up his rights to a Mumbai flat, and in return, the wife agreed not to ask for alimony.

The Court referred to Mukesh v. State of Madhya Pradesh (2024) and decided that since the property transfer was part of the court proceedings, it qualified for a stamp duty exemption.

Hence, the Sub-Registrar was directed to register the flat solely in the wife’s name.