How to File Your Tax Return in the Year of Divorce and Why Negotiate Everything Ashore

Only three out of ten couples conclude financial agreements in advance in case of a possible divorce. These are the results of a study by the tax authority (Belastingdienst), which examined the cases of 530 people who have divorced in the past five years.

Most of the mistakes in tax returns are about shared housing. Four out of ten couples do not enter into any agreements to share mortgage payments for a shared home. Also, one of the three does not agree on paying taxes, refunding deductions and receiving benefits.

What is the threat? Let's say both ex-spouses are eligible for a mortgage tax deduction for a shared home. But they did not agree in advance on how they would request it, and filed separately for this deduction. As a result, the tax office can pay a deduction only for the first processed declaration, and consider the second one erroneous. Accordingly, the second partner / spouse will receive nothing.

It is not necessary to enter into financial agreements during a divorce, but Manuela van Blanken, divorce expert at Belastingdienst, recommends them.

 “By concluding financial agreements, you receive guarantees that your financial issues will be resolved properly. If any misunderstandings or disputes arise, you can always appeal to the agreement. Yes, it's not romantic at all, but it's better to agree on everything in advance while you can still calmly talk about your finances. For example, when you are going to live together or get married,” she told De Telegraaf reporters.

File your tax return together or separately?

Both are possible. Tax consultants advise to agree with each other on all points (benefits, expenses, allowances) and submit one tax return for two. This will help prevent many mistakes and give you the opportunity to profitably split joint income and deductions one last time.

But you can do it separately. All of the above applies only to the year in which the divorce itself occurred. For the next year, ex-spouses must file their tax returns one at a time. Of course, if the former partners have left. It happens that a couple, even after a divorce, remains to live in the same house.

Our experts provide assistance in filling out the tax return. If you are going to get divorced, it is best to seek advice with your partner.