In the event of a divorce, agreements may need to be made regarding spousal maintenance. This obligation arises from the idea of care between marriage partners. After the divorce, in many cases the highest-earning partner must contribute financially to the ex-wife or husband. This is also the case, for example, if the lowest-earning partner has to turn to the municipality for social assistance benefits. The contribution of the maintenance debtor will then be paid in full or in part to the municipality. In the divorce agreement, ex-partners must make agreements about the financial settlement.
When is there a right to alimony?
There are different ways to calculate the amount of alimony. The partners must discuss among themselves what amounts they agree on. If they cannot reach an agreement, the judge can make a ruling on this. If the lowest-earning partner receives social assistance benefit from the municipality, the municipality can carry out its own assessment despite the agreements in a divorce agreement.
Tax treatment of alimony
The alimony paid is tax deductible as a personal deduction. One condition is that it must be legally enforceable. In other words, they must not be gifts, but the provider of alimony must have an obligation to pay this. For the recipient, alimony is again taxed as periodic payments and benefits in kind.
Alimony for cohabitants
In the past, alimony could only be agreed upon upon the termination of a marriage or registered partnership. Nowadays, cohabitants can also make agreements about this. Here too, the condition applies that payment must be able to be enforced. The cohabitants must record the obligation to pay alimony in writing.
Buy off alimony in one go
The provider and the recipient of alimony can also agree to buy out the right to alimony by making an amount available in one go. He or she can deduct this amount from the income and it is added back to the recipient’s income as income. The advantage for the provider is that the full amount can be deducted from income in the relevant year. The recipient has the disadvantage that the full amount will be added to the income and will also be taxed in that year. This disadvantage can be overcome by having the amount deposited with an insurer instead of with the recipient. A periodic benefit can then be purchased for this amount. The option to pay in one go does not apply to cohabitants.
What is the duration of spousal support?
The maintenance obligation applies for a period of twelve years. A shorter term is possible if the marriage lasted less than five years. The duration of the obligation is then limited to the number of years that the marriage lasted. This shorter period does not apply if children were born from the marriage.
The length of the alimony obligation is under discussion
The maximum duration of the obligation will probably be shortened in the future. Twelve years is considered too long a period during which the ex-partner is still obliged to support the former partner.