Ooms for Tax
Do not forget your fiscal (deductible) items
In the case of divorce, many people often instruct a lawyer to advise them. The lawyer arranges consultations and organises the divorce agreement and the further settlement of the divorce. It is often forgotten that a divorce also usually has tremendous fiscal and financial consequences! These affect, inter alia, the mortgage interest deductions for the home in combination with the “surplus value rule”. Through the divorce, a loss can occur with regard to the deductible mortgage interest, especially in situations where one of the partners continues to live in the home! In addition, the term of 30 years is often forgotten about.
Other important fiscal aspects of your divorce are your pensions and annuity policies. It is usually forgotten that, in the future, income tax is due over the payments that should be included in the divorce agreement.
If you are self-employed or a managing director and major shareholder, there are even more fiscal aspects to be taken into consideration than already indicated. For example, your company is often included in the partition/division of the joint matrimonial property, but also your pension that usually is part of your company capital! Commutation through the divorce should be prevented! We are happy to consult your lawyer about this!
Your income tax return
Your income tax return in the year you divorce deserves extra attention. The division of your capital as well as your deductibles should be entered correctly in your return! All sorts of tax credits and deductibles for your children to which you were not entitled prior to your divorce, now require attention. This can save a lot of money annually!
The divorce radically changes your finances. Not just in the year of your divorce, but in principle in all the subsequent years. You can easily lose your overview. Financial planning can help here and ensures you can track your annual income and the net amount you can afford to spend. We are only too pleased to be of assistance in drawing up your financial planning!
Will and Estate Planning
Your will should be reviewed after your divorce. It can also be a choice moment to have a will drawn up. A well-drafted will can save you a lot of Euros in Inheritance Tax! But a will also has consequences for the income tax assessments for the person who dies (the testator) and his heirs. Due to the complexity of Inheritance Tax and the concurrence with income tax, specialised software and knowledge are necessary to ensure you an optimum fiscal position.
We have this at our disposal and are keen to work closely with your civil-law notary.
Please do not hesitate to contact us for a free-of-any-obligation introductory meeting!