How does a divorce affect my tax return?
March 3, 2024 | 55,00 EUR | answered by Christine Witzelmann
Dear Tax Advisor,
my name is Felix Krüger and I am facing a personal challenge: my wife and I have decided to get a divorce. This decision raises not only emotional questions, but also financial ones. I am concerned about how the divorce will affect my tax return.
So far, my wife and I have filed our taxes jointly and benefited from tax advantages. Now the question arises whether I will have to file individually after the divorce and what the tax implications will be. I am worried that I may have to accept tax disadvantages or that the separation could lead to a complicated tax situation.
Therefore, I would like to ask for your advice: How exactly will a divorce affect my tax return? What changes do I need to consider and what options are there to still benefit from tax advantages despite the separation? Are there any specific regulations that I should take into account?
I would greatly appreciate it if you could assist me in this matter. I urgently need clarity on how to best structure my tax return after the divorce to avoid financial losses.
Thank you in advance for your support.
Sincerely,
Felix Krüger
Dear Mr. Krüger,
I understand that you are in a difficult situation and are concerned about the tax implications of your divorce. Divorce can indeed lead to significant changes in your tax situation, but there are also ways to obtain tax benefits and avoid financial losses.
After a divorce, you typically have to file your tax return separately from your former wife. This means that you will no longer be jointly assessed, but each individual will be responsible for their own taxes. In some cases, this can lead to tax disadvantages as certain tax benefits that you may have utilized as a married couple may no longer apply. For example, after a divorce, you can no longer benefit from the lower tax rates for married couples.
However, there are also ways to obtain tax benefits. For example, under certain circumstances, you can claim alimony payments to your divorced wife as tax deductible. These payments are deductible for you as the payer and taxable for your divorced wife. It is important that these alimony payments are properly documented and substantiated in order to receive tax benefits.
There are also special regulations that you should consider, such as the so-called "Realsplitting". With Realsplitting, you can continue to utilize the tax benefits of a joint assessment even after the divorce by dividing certain income and assets and reporting them accordingly in your tax return. This can help you to obtain tax benefits and minimize financial losses.
It is important that you consult with a tax advisor early on to discuss your individual tax situation and take appropriate measures. A tax advisor can help you optimize your tax return and obtain tax benefits. Do not hesitate to seek professional assistance to avoid financial losses.
I hope that my explanations have been helpful and have provided you with clarity regarding your tax situation after the divorce. If you have any further questions, please feel free to contact me.
Best regards,
Christine Witzelmann
