In spite of recent progress in the understanding of magma-poor rifted margins, the processes leading to the formation and evolution of the exhumed mantle domain and its transition toward steady state oceanic crust remain debated. In particular, the parameters controlling the progressive localization of extensional deformation and magmatic processes leading to the formation of an oceanic spreading center are poorly understood. In this paper, we highlight the occurrence of two major decoupling horizons controlling the structural and magmatic evolution of distal magma-poor rifted margins. They are marked by strong seismic reflectors located at about 1 s TWTT (Upper Reflectors–UR) and 2 s TWTT (Lower Reflectors–LR) below top basement in domains of exhumed mantle at several magma-poor rifted margins. Both reflection seismic observations and studies on the physical properties of serpentinized mantle suggest that the UR likely results from deformation localized along a rheological interface at about 3 km below top basement, associated with an abrupt change in the mechanical behavior of peridotites once they are serpentinized to ~15%. We suggest that this interface played a major role in successive fault re-organizations during formation of the exhumed mantle domain. The comparison of reflection seismic observations with Alpine field analogues suggests that the LR likely results from an interaction between magmatism, deformation and hydration reactions during final rifting. Based on our results, we suggest that during final rifting the strain distribution is controlled first by hydration and then by magmatic processes in the domain of exhumed mantle.