Can I claim the costs of my divorce for tax purposes?
February 5, 2023 | 70,00 EUR | answered by Alwin Hohenwarter
Dear lawyer,
My name is Heike Seebauer and I am about to go through a divorce. In this context, I would like to know if I can claim the costs of my divorce as a tax deduction.
My ex-husband and I have mutually agreed to divorce as we have drifted apart in the last few years. We do not have any minor children or shared financial obligations. However, some costs have arisen for the divorce, such as lawyer fees, court costs, and potentially also costs for mediation or expert opinions.
As a single working mother who is not financially well-off, it would be a great relief for me if I could claim the costs of the divorce as a tax deduction. I am worried that the financial burden of the divorce will further deteriorate my financial situation and I may even have to incur debt.
Therefore, my question to you is: Can I deduct the costs of my divorce for tax purposes? Are there specific requirements that I must meet to claim the costs as a tax deduction? What documents do I need and how should I proceed to be able to deduct the costs of the divorce for tax purposes?
I thank you in advance for your support and advice.
Sincerely,
Heike Seebauer
Dear Mrs. Seebauer,
Thank you for your inquiry regarding the tax deductibility of divorce costs. In general, the costs of a divorce are not tax deductible. However, there are exceptions where you may be able to claim the costs of your divorce on your taxes under certain conditions.
Generally, costs for legal disputes that are privately motivated are not tax deductible. A divorce typically falls under the category of private legal disputes. Nevertheless, there are some exceptions that allow you to deduct the costs of the divorce from your taxes.
One requirement is that the costs of a divorce can be claimed as extraordinary burdens. This is the case when the divorce was necessary due to a serious conflict between the spouses. In your case, since you and your ex-husband are mutually divorcing, it could be difficult to recognize the costs as extraordinary burdens.
Another requirement is that the divorce costs are in proportion to your income and assets. As a single working mother who is not financially well-off, this could work in your favor. However, it is important that you have borne the costs of the divorce within your financial means.
To be able to deduct the costs of your divorce from your taxes, you should collect all relevant receipts and invoices. These include lawyer's fees, court costs, costs for mediation or expert opinions, as well as any other expenses related to the divorce. You should carefully keep these receipts and submit them with your tax return.
It is advisable to consult a tax advisor or a specialist in tax law to assess your individual situation and determine whether and to what extent the costs of your divorce are tax deductible. An expert can also assist you in correctly filing your tax return and provide valuable tips.
I hope that these information have been helpful to you. If you have any further questions, please feel free to contact me.
Kind regards,
Alwin Hohenwarter, Attorney specializing in fee law.
