Divorce Mediation No Longer Deductible

In the year 2001, the regional finance office (Oberfinanzdirektion) Koblenz published an order stating hat costs of mediation in connection with a divorce were deductible as extraordinary expenses. Unfortunately, this office does not uphold this opinion anymore.

As of March 4, 2008, the costs of such a family mediation may not be considered as a deduction anymore. This goes back to a judgment of the Federal Tax Court of June 30, 2005, whereby only such costs, which are directly and inevitable connected with divorce proceedings may be considered. Typically, legal costs of the divorce and pension rights adjustment are still considered as extraordinary expenses following §33 EStG.

Hint:

Even if mediation costs are not relevant for taxation purposes anymore, this still can be a less costly alternative to more costly argument proceedings via attorneys. During mediation, the spouses reach an out-of-court agreement, which is recorded by a notary and serves as the basis for the obligatory divorce proceedings.






Published on the old CMS: 2008/8/31
Read on the old CMS till November 2008: 1,565 reads