Divorce affects your tax return in more ways than you think
Divorce is emotionally challenging. But there's also a lot you might not immediately think about: your tax return changes drastically. Fiscal partnership, mortgage interest deduction, alimony, allowances, pension, Box 3 — everything shifts.
In this article, we walk through the eight most important tax consequences of divorce step by step. With current figures for tax year 2025, so you know exactly where you stand when filing in 2026.
Step 1: Fiscal partnership — when does it end?
Fiscal partnership determines how you file your tax return. As fiscal partners, you can divide deductions and income between you. After divorce, this changes.
For married couples and registered partners
You are no longer fiscal partners when both conditions are met:
- A divorce petition (or request to dissolve the registered partnership) has been filed with the court
- You are no longer registered at the same address with the municipality (BRP)
Both conditions must be fulfilled. Living at the same address but divorce filed? Still fiscal partners. Living apart but no petition filed? Also still fiscal partners.
For cohabiting couples
Fiscal partnership ends as soon as you are no longer registered at the same address. No legal step is required.
Choice in the year of divorce
Does your fiscal partnership end during the year? You can choose to file as fiscal partners for the entire year. This is often more beneficial: you can strategically allocate deductions like mortgage interest to the partner with the highest income.
Tip: The Tax Authority notes that filing jointly in the year of divorce reduces the chance of errors. Discuss with your ex whether this benefits you both.
Step 2: Alimony — what's deductible and what's not?
One of the biggest tax items in a divorce is alimony. But pay attention: there's a crucial difference between partner alimony and child support.
Partner alimony (partneralimentatie)
| Payer | Recipient | |
|---|---|---|
| Tax treatment | Deductible as personal deduction | Must be reported as income (Box 1) |
| In tax return | Enter as deduction | Under "Pension and other benefits" |
Partner alimony is fully deductible for the payer. The deduction is first offset against Box 1 income, then Box 3, then Box 2. For the recipient, it's taxable income.
Note for high incomes: Is your income above €76,817 (2025)? The tax benefit of the deduction is limited to 37.48% instead of the top rate of 49.50%.
Child support (kinderalimentatie)
Child support is not deductible for the payer and not taxed for the recipient. It's completely tax-free — you don't need to report it in your tax return.
Lump-sum settlement
You can settle partner alimony in a lump sum. This is deductible for the payer under the same rules as periodic alimony. The recipient must report the lump sum as income in the year of receipt. Warning: this may affect your allowances that year.
Duration of partner alimony
Since 1 January 2020, new rules apply:
- Standard: maximum 5 years (or shorter if the marriage lasted less than 10 years — then half the marriage duration)
- Exception for young children: alimony continues until the youngest child turns 12
- Exception for long marriages (15+ years): alimony until the recipient reaches state pension age (AOW)
2025 indexation: All alimony amounts were increased by 6.5% as of 1 January 2025, based on average wage growth.
Step 3: Your home and mortgage interest deduction
The family home is often the biggest financial issue in a divorce. Who stays? Who pays the mortgage? And who can deduct the interest?
The 2-year rule (divorce arrangement)
Leaving the shared home? The divorce arrangement applies: the home you leave is still treated as your "own home" for tax purposes for up to 2 years. This means:
- You can still deduct mortgage interest on your share of the debt for 2 years
- You must still report the deemed rental value (eigenwoningforfait) on your share as income
- After 2 years, the deduction stops and your share moves to Box 3
Deemed rental value (eigenwoningforfait) 2025
Most homes (WOZ value €75,000–€1,330,000) have a deemed rental value of 0.35% of the WOZ value. For a home worth €400,000, that's €1,400 per year (€700 per person with 50/50 ownership).
Above €1,330,000, the luxury surcharge applies: €4,655 + 2.35% of the excess.
Maximum mortgage interest deduction 2025
Mortgage interest is deductible at a maximum rate of 37.48%. For income above €76,817, the deduction is limited — the benefit is lower than the top rate of 49.50%.
Buying out your ex-partner
If one partner buys out the other, it's treated as a home sale (for the departing partner) and a home purchase (for the staying partner). The new loan for the buyout must meet repayment requirements (annuity or linear) to be deductible.
Ex living in the home rent-free
If your ex lives in the home rent-free based on an alimony obligation, you can deduct the deemed rental value on your share as paid partner alimony. If your ex pays rent, this deduction doesn't apply.
Step 4: Pension equalisation
Upon divorce, the pension built up during the marriage is divided. This is regulated by the Wet verevening pensioenrechten bij scheiding (WVPS) — the Pension Rights Equalisation Act.
Standard: 50/50 split
Both ex-partners are entitled to half of the retirement pension the other built up during the marriage. Pension from before or after the marriage is excluded.
Report within 2 years
You must notify the pension fund within 2 years. If you do, the fund pays the equalised portion directly to your ex-partner.
Report late? The fund pays the full pension to the person who built it up, who must then transfer 50% to the ex. This creates a tax disadvantage: the pension recipient pays tax on the full amount (up to 49.50%), but can only deduct the transfer at a maximum of 37.48%.
Tax on equalised pension
Equalised pension is taxed in Box 1. When reported on time, the pension fund withholds payroll tax on the payment to your ex-partner.
State pension (AOW) is not equalised
The AOW is not covered by the WVPS. Everyone builds up AOW rights individually. However, the amount changes: after divorce you move from the married rate (€1,081.50 gross/month in 2025) to the single rate (€1,580.92 gross/month).
Deviating from 50/50
You can agree on a different split in prenuptial agreements or the divorce settlement. You can also choose conversion: the equalised pension is then converted into an independent pension right.
Step 5: Box 3 — dividing assets
Your Box 3 assets are taxed based on the reference date 1 January. A divorce during the year has concrete consequences.
Reference date and the year of divorce
Were you still fiscal partners on 1 January 2025? Then you report joint assets and debts as of that date. You can choose to file as fiscal partners for the full year — allowing you to freely divide the Box 3 tax base.
Tax-free allowance 2025
| Situation | Tax-free allowance |
|---|---|
| Per person (single) | €57,684 |
| With fiscal partner (combined) | €115,368 |
After divorce, your tax-free allowance drops from €115,368 (combined) to €57,684 (single). With combined assets of €200,000, as partners you'd pay no tax on the first €115,368 — after divorce, each of you only gets €57,684 exemption.
Deemed returns 2025
| Category | Return |
|---|---|
| Bank savings | 1.37% |
| Investments and other assets | 5.88% |
| Debts (deduction) | 2.70% |
The Box 3 tax rate is 36% on the deemed return.
Home in Box 3
If you've left the home and the 2-year period has expired, your share of the home value moves to Box 3. The WOZ value counts as an asset, the remaining mortgage debt as a deductible liability (minus the €3,800 threshold per person).
Step 6: Re-apply for allowances
After divorce, your income and household composition change. This may give you access to allowances you weren't eligible for as a couple.
Healthcare allowance (zorgtoeslag) 2025
| Single | With allowance partner | |
|---|---|---|
| Maximum amount | €131/month | €250/month |
| Income limit | €39,719/year | €50,206/year |
| Asset limit | €141,896 | €179,429 |
Child-related budget (kindgebonden budget) 2025
As a single parent, you receive a substantial extra allowance: the single parent supplement of €3,389 per year on top of the base amount of €2,511 per child. That's €5,900 per year for your first child.
The phase-out begins at income of €28,406 (single) at a rate of 7.10%.
Rental allowance (huurtoeslag) 2025
Renting after divorce? You may qualify for rental allowance. The maximum rent is €900.07 per month. The asset limit is €37,395 (single).
Childcare allowance (kinderopvangtoeslag) 2025
With co-parenting, both parents can apply for childcare allowance. The reimbursement percentage depends on your income — as a single parent with lower income, the percentage is often higher (up to 96% at the lowest income).
Important: Update your allowances immediately after divorce. For married couples, the allowance partnership ends when the divorce petition is filed and you live at a different address. Delay means you may miss out on allowances or receive too much and have to pay it back.
Step 7: File jointly or separately?
In the year of divorce, you have a choice: file together one last time, or separately.
When filing jointly is beneficial
- One of you has many deductions (mortgage interest, medical costs, charitable donations)
- There's a large income difference — allocating deductions to the higher earner yields more benefit
- The Box 3 tax base can be divided between you
When filing separately is beneficial
- As a single person, you're entitled to higher tax credits
- Your income is low enough to qualify for allowances you wouldn't get as a couple
Our advice: Always calculate both scenarios. The difference can be hundreds of euros.
Step 8: Transfer tax implications when selling the home
Selling the shared home? This may create a home equity reserve (eigenwoningreserve): the difference between the sale price and the outstanding mortgage.
Impact on your next home
When buying a new home, you can only deduct mortgage interest up to: purchase price of the new home minus your home equity reserve.
Example: With €40,000 in equity and a new home of €200,000, the maximum deductible mortgage is €160,000.
Division of home equity reserve
| Situation | Division |
|---|---|
| Community of property | 50/50 |
| Prenuptial agreement | As specified in the agreement |
| Cohabiting | Based on ownership ratio |
Note: The Tax Authority clarified in 2025 that the home equity reserve is divided based on economic ownership, not contractual agreements about how the proceeds are split.
Checklist: everything at a glance
Use this checklist during your divorce:
- ☐ Fiscal partnership: verify both conditions are met (divorce petition + different address)
- ☐ Year of divorce choice: calculate whether filing jointly or separately is more beneficial
- ☐ Alimony: formalise agreements in a covenant — partner alimony is deductible, child support is not
- ☐ Family home: arrange within 2 years who takes over the home, or sell it
- ☐ Pension: notify all pension funds within 2 years
- ☐ Box 3: determine asset division as of the 1 January reference date
- ☐ Allowances: apply immediately for healthcare allowance, child budget, and potentially rental allowance
- ☐ Transfer rules: account for your home equity reserve when buying your next home
When to hire an expert
Divorce makes your tax return significantly more complex. Especially when a home, pension, or alimony is involved, it pays to have a tax specialist review your situation. Common mistakes — like reporting to the pension fund too late, missing the 2-year deadline, or incorrectly dividing deductions — can cost you thousands of euros.
Want to know what divorce means for your tax situation? Take our free tax check. We'll review your situation at no cost and give you honest advice. Or book a consultation directly with one of our tax specialists.
