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-   -   Reregistration of Aircraft After Divorce (http://www.vansairforce.com/community/showthread.php?t=156847)

jetjok 01-12-2018 11:19 AM

Reregistration of Aircraft After Divorce
 
Does anyone have any experience getting their aircraft reregistered to sole ownership after a divorce? I have to accomplish that with my RV-6, now that things are finalized.
When I added my wife's name to the planes, I was told by the FAA to utilized a Bill of Sale. This was a convoluted process that took 2 additional exchanges of documents and an extended period of time. Furthermore, utilizing a BoS triggered a sale report to my State Franchise Tax Board, and the battle was then on to keep them from collecting sales tax! Needless to say, I do not want to repeat that process (x2)! I have called my local FSDO, FAA HQ, and AOPA, and I have not gleaned any good information. Currently, I have an email in to AOPA so that maybe they can do some serious research.
It is not something that I enjoy dealing with, but life sometimes throws us curveballs! You can reply here or via PM.
Thanks, guys!

P.S. - I guess it would be the same process for dealing with transfer after the death of a spouse? Anyone?

Lars 01-12-2018 11:32 AM

Quote:

Originally Posted by jetjok (Post 1231717)
Does anyone have any experience getting their aircraft reregistered to sole ownership after a divorce? I have to accomplish that with my RV-6, now that things are finalized.
When I added my wife's name to the planes, I was told by the FAA to utilized a Bill of Sale. This was a convoluted process that took 2 additional exchanges of documents and an extended period of time. Furthermore, utilizing a BoS triggered a sale report to my State Franchise Tax Board, and the battle was then on to keep them from collecting sales tax! Needless to say, I do not want to repeat that process (x2)! I have called my local FSDO, FAA HQ, and AOPA, and I have not gleaned any good information. Currently, I have an email in to AOPA so that maybe they can do some serious research.
It is not something that I enjoy dealing with, but life sometimes throws us curveballs! You can reply here or via PM.
Thanks, guys!

P.S. - I guess it would be the same process for dealing with transfer after the death of a spouse? Anyone?

Mark, I don't have an answer for you, but if you learn anything useful, please share! That would help me as well.

fixnflyguy 01-12-2018 11:34 AM

I don't have a factual answer, but I went through a divorce during my build, prior to registration, ect. I was granted the RV in the equitable distribution after financial compensation for the planes value as it was. In other words, the ex couldn't come back later asking for more. My car was however in both names, and still is 15 years later (I keep my cars and planes long). My divorce papers clearly give me sole ownership, as well is hold harmless if car does something bad. I did sell one vehicle that was in both names, and the divorce paper was adequate for title transfer to new owner...If you can stomach it, perhaps its best left alone if you can suffer the anguish!

vic syracuse 01-12-2018 11:37 AM

Yes, it usually takes a bill of sale, but not always. However, it does state this on the application:


If not purchased from the last registered owner, the applicant must submit conveyances completing the chain of ownership from the last registered owner to the applicant.

So, a legal document showing the transfer with prior owner's signatures, should suffice.

Vic

Breezy 01-12-2018 12:17 PM

Mark,
Sorry to hear things didn't work out.
It seems to me that if both parties are in agreement a simple transfer or Bill Of Sale filing would work. Both sign as seller and you enter your name as buyer.

Regarding the State wanting their lick off the ice cream cone. The FAA doesn't generate any revenue from aircraft sales. Therefore, they have no concern with what you put as the selling price. The only issue on your part is false info on a federal form.

A term recognized by the FAA as a legitimate entry for selling price is "$1+OVC" (Other Valuable Consideration). In the case of a divorce how could this be more truly expressed.

If you haven't already check into aircraft sales for your state, take some time to do so. Here in Ohio an aircraft sale between individuals is considered a "Casual Sale" and is non-taxed. Usage Tax is only applied if the sale is at a Dealership or from the Manufacturer.

Don't know if you have contacted FAA Registry, but I have found them to be very helpful with registration questions.

Good Luck.

pa38112 01-12-2018 12:54 PM

Get her to sign a Bill of sale for 1/2 ownership for $1. The FAA does not care about taxes, just transfer of ownership. The states don't charge you taxes for this transfer, but require it to be at least $1 for some reason - done it many times with cars.

humptybump 01-12-2018 01:00 PM

A work of caution on the “$1.00” value. Many states watch for personal property items such as boats and airplanes and if they see “$1.00” it triggers an estimated value assessment.

Perhaps you could ask the county or state administrator how to process the transfer so it is recognized and a zero-sum transaction.

sglynn 01-12-2018 02:53 PM

Transfer lesson learned
 
Quote:

Originally Posted by pa38112 (Post 1231742)
Get her to sign a Bill of sale for 1/2 ownership for $1. The FAA does not care about taxes, just transfer of ownership. The states don't charge you taxes for this transfer, but require it to be at least $1 for some reason - done it many times with cars.

And the lesson is have the bill of sale part of the divorce final papers. If it is an unfriendly divorce getting signature after could be impossible.

Steve Ashby 01-12-2018 02:59 PM

I am a family lawyer in Georgia
 
I do not know about California family law, but I would probably not utilize a bill of sale in this instance. Rather, this transaction is a transfer of property rights incident to a divorce. The applicable document is the divorce decree itself. If that is not acceptable to the bureaucrats at FAA, I would craft a separate transfer document. In Georgia, a transfer of interest in property incident to a divorce is not a taxable event. I think it would be a good idea to contact a local family lawyer.

TS Flightlines 01-12-2018 04:41 PM

too bad Steve doesnt practice in California too!

Tom


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