How to Arrange Money After a Divorce | Debts and Loans

Divorce is an emotionally and financially challenging process that puts both parties in a new situation.

There may be questions in mind about how to organize your finances after the divorce, what to consider, and how much the divorce will cost. We clarified these issues and listed 5 things to consider at least in divorce.

Can a divorce affect my taxation?

Can a divorce affect my taxation?

Divorce can also affect taxation if the spouses have children or are living together.
In the case of common-law marriage, the following paragraphs may apply to taxation.

      • Deduction of maintenance: The income tax deduction can be deducted from the maintenance debtor. The deduction can be obtained from 1/8 of the payment of maintenance, up to a maximum of € 80 / year / minor.
      • Deficit Compensation: The interest deferred deficiency credit is € 1,400 and is granted to the parent with the child / ren.
      • Asset Transfer Tax: If you have a shared dwelling and external assets are used in the event of a break-up, you may be subject to an asset transfer tax. Read more here and in the previous sections on vero.fi.

Also read: Remember these tax deductions

Debt and debt restructuring

Debt and debt restructuring

Most couples have common debts and loans, which are rescheduled to divorce.

For example, when considering a new bank loan for a new home, you might want to compete with different banks and compare different options.

The same bank where you deal with your common money may not be the best option after a divorce, the benefits of concentrating often disappear and the spouses also have different needs as an individual as a married couple. For example, check out our comparison of what kind of banking package you need.

Sometimes it may be possible to get parallel cards with your spouse. Do you just have a spouse credit card for your spouse and now you need to get one? Compare credit cards in our price comparison, which also shows the benefits of the cards:

Housing arrangements

Housing arrangements

When you leave, it is time to rethink your housing arrangements – is it worth renting or buying a home and how much loan is available to buy a home?

For many, the decline in living standards may come as a surprise when a new mortgage loan from a bank does not allow you to get a large home in a good location as the old one – after all, there is only one repayer.

Often, the apartment is wanted for sale as soon as possible and even below market price. It is worth considering, however, whether you could live for a little more time but get a better sale price for your old home. If the housing situation is already leveled and you know where to stay, a new mortgage may be a better solution than rent.

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