Costs of a divorce: what costs are inevitable
The cost of a divorce differs from case to case. However, some amounts are incurred with every divorce. Find out here what costs you have to reckon with if you get a divorce and why an amicable divorce is often cheaper.
When spouses decide to get divorced, in most cases it is not an easy decision. In many cases, this step is made even more difficult by the financial burden that the partners face in the event of a divorce. Because even if the costs of a divorce vary greatly from case to case, there are some costs that are incurred in any case.
Unavoidable costs of a divorce
In the event of a divorce, the costs that are generated by the divorce process itself, i.e. court and lawyer’s fees, cannot be avoided:
- The court fees are calculated using the court fees table. They are shared equally by both partners, with the partner filing for divorce having to pay the amount at the very beginning of the proceedings. The basis for calculating the court fees is the value in dispute of the divorce, which primarily depends on the income and assets of the spouses. You can find detailed information on determining the amount in dispute in our article “Determining the amount in dispute” .
- The calculation of the lawyer’s fees, which has been carried out with the help of the Lawyers’ Fees Act (RVG), which has been in force since 2004, is also based on the value in dispute of the divorce. The attorney’s fees are made up of the fees for conducting the divorce proceedings , the costs for attending the court hearing for the divorce, the costs for any settlement that may have been reached, and a flat-rate expense allowance. In addition, 19 percent VAT is charged for appointment, procedure and settlement fees.
In an amicable divorce, both partners do not have to be represented by a lawyer. Because only the divorce application must be submitted to the court by a lawyer. Only one attorney is required to divorce a marriage. If the spouses agree, this can easily save costs in the event of a divorce. However, if ancillary matters such as custody or maintenance are to be settled, both partners must hire their own lawyer.
However, it should be clear that the person who hires the lawyer must also pay for it. In this way, the divorce is not automatically cheaper for this partner than if the other spouse also hired a lawyer. In order to really save money, it is imperative that a written agreement is reached between the spouses that the person who does not have a lawyer contributes 50% to the other person’s legal fees.
Optional costs of a divorce
In addition to these unavoidable costs of a divorce, there can also be costs for ancillary matters, such as the settlement of child support payments or child custody . However, these can be separated relatively easily from the actual divorce proceedings and clarified otherwise between the spouses.
It is precisely these procedures that often make a divorce contentious and complicated. Therefore, a separation is not always possible or sensible. In addition, it is more expensive to clarify alimony or gains in a separate procedure than to process them as a result of the divorce.
This is more difficult when it comes to equalizing pensions . Unless there is an exception, this is carried out in any case during the divorce proceedings. This increases the costs of the divorce by 10 percent of the initial value in dispute for each pension entitlement to be settled.
For a mutual divorce, the costs are often lower, not only because the spouses only have to hire a lawyer. Family courts often also reduce the total value of the proceedings by up to 30 percent if no further procedural steps to settle ancillary matters are to be expected. It can therefore be worth reaching an out-of-court agreement with your partner about alimony and the like.
Deduct the cost of a divorce from your taxes
Legal and court costs can be claimed in the tax return as “extraordinary expenses”. However, a certain amount, which is referred to as a “reasonable burden”, is deducted from the total amount – usually between 1 and 7 percent of the income.
Also maintenance payments to the spouse (no child support!) can often be deducted: rather small amounts also as “extraordinary burdens”, higher sums as “special expenses”. This is also possible if the divorce is not yet final, provided that the spouses make separate assessments. Good to know: Since the maintenance debtor has to financially compensate for the disadvantages that the maintenance debtor suffers as a result of the tax claim, it is advisable to think carefully about whether this approach is worthwhile.
In addition, the costs incurred in the context of the divorce for clarifying custody of joint children, for carrying out the pension equalization, for determining maintenance obligations and the costs for regulating all matters relating to the division of assets and possessions can be deducted. Relocation costs, bank fees and the costs for carrying out the equalization of gains are not tax-relevant .