Your fiscal situation will also change.
A divorce in itself is difficult enough. Unfortunately, it often also means a change in your fiscal situation and so there are some things you have to pay attention to. As a result, a random distribution or made agreements may result in unfavorable results. For instance regarding child or partner alimony or the allocation of the primary residence.
Tax implications in a divorce
Frequently asked questions are:
- What are the fiscal consequences of a divorce?
- Do we still have to file our income tax return together?
- Are there any tax credits in my income tax return?
One of the consequences of a divorce may be the payment of partner alimony. You can deduct these and other costs that are part of your ‘maintenance obligation’ in your tax return. However, this doesn’t apply to the alimony for your children.
If you receive alimony, it is important to realize that the alimony is seen as income by the Dutch tax office. You are to state the received alimony in your tax return as income.
If you are to divorce and there is a child involved, you may be eligible to the income dependable combination discount.
Request professional advice
It is advisable to be well informed regarding your obligations and rights, the fiscal consequences of the divorce and/or the divorce agreement by seeking advice from experts. Feel free to contact our advisers for tailored advice.