Every year, thousands of parents face divorce—a challenging time that involves coordinating many details, especially with children at home. While taxes may not be top of mind, addressing them properly ensures financial stability. The Dutch Tax and Customs Administration (Belastingdienst) offers clear guidance through five common questions and answers to help divorcing parents navigate this.
Divorcing or separating parents often grapple with updating their tax situation. The Belastingdienst's 'Do you want to move on, but not with each other?' campaign provides a personal divorce checklist to identify key taxes and allowances, including for those with children living at home. Here are answers to the top five questions.
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Arranging a divorce thoughtfully is crucial, particularly to minimize impact on children. Taxes rank among the practical steps to handle effectively for long-term security.
If you're interested in resources on divorce and children, consider the recommended books below.
As the primary caregiver post-divorce, you may qualify for income tax reductions and benefits like the income-related combination discount, childcare allowance, rent allowance, and child budget.
Eligibility depends on conditions such as your child's age (under 12 for the combination discount), employment status, and minimum earnings (over €5,153 in 2021). Benefits also factor in income, co-parenting arrangements, and spousal support. The Belastingdienst advises verifying entitlements carefully.
Before applying or adjusting child-related benefits, ensure your ex-partner is removed as your allowance partner.
In co-parenting, children alternate homes, and parents share upbringing costs. Over 25% of parents with children at home choose this. See what to arrange for co-parenting and its impact on allowances here.
Divorce often changes finances—income, partners, childcare hours, or living situations. Update your provisional assessment and benefits promptly via My Tax Authorities (four simple steps) or My Allowances to avoid overpayments or refunds. Report changes immediately.
Post-divorce, partners may owe spousal support. Recipients pay tax on it; payers deduct it. Deduction rates are phasing down: from 2021, max 43% for incomes over €68,507 (46% in 2020; postponements available). This affects provisional assessments and child benefits like childcare allowance—report changes via My Tax Authorities and My Allowances. Consult an advisor and document agreements.
If children live solely with you, your ex pays child support; otherwise, you pay. Record details (amount, schedule) in a parenting plan. Child support is neither deductible nor taxable income—no need to declare it.
Even if divorcing mid-year, you can file as tax partners for that year, optimally dividing income and deductions (totaling 100%). This applies with children, but watch impacts on allowances.
Joint digital filing via My Tax Authorities is easiest—pre-filled data includes homes, mortgages, savings. If separate, use your ex's details. Post-divorce or opting out of partnership, file independently without divisions.
Learn more: Visit belastingdienst.nl/scheiden and complete the personal divorce checklist.
