In the event of a divorce, the tax situation changes with the joint household duties of the spouses. The previous joint taxation is no longer applicable and the spouses must again file individual tax returns. A change in the tax brackets for the wage deduction procedure is required.
If one spouse pays maintenance to the other after the joint household of the spouses has ceased to exist or after the divorce, such payments are, if applicable, tax-deductible as special expenses provided that the recipient of the payment agrees to them and undertakes to have them taxed.
If spouses have joint business or private assets, such as a shared single-family home or a shared apartment, and this is to be transferred to one spouse as part of the divorce, there is a risk that the transfer will trigger income tax for both spouses or former spouses. This results in this transfer being considered a fee-based transfer and thus an asset transaction within the meaning of § 23 EStG can arise.
As tax advisors, we regularly advise our clients on the tax consequences of a divorce and show them ways to prevent or minimize the adverse tax consequences of a divorce.
As tax advisors, we advise our clients on all tax-related matters, identify existing tax risks, and suggest solutions to avoid tax risks.
