Impacts of divorce on taxation

After permanent separation, you and your partner are no longer regarded as spouses in taxation. You are not treated as spouses in tax assessment for the entire year during which you separate. The exact date when you move apart is not relevant.

An indication of permanent separation is

• a divorce
• the actual living apart, shown by change of address, when the divorce is pending (reconsideration period).

Divorce may affect the following tax matters

Tax credit for deficit in capital income

The tax credit for deficit in capital income, which is related to the interest deduction, is €1,400. A child increase to the maximum amount of the tax credit for deficit in capital income is granted to the parent with whom the child or children live for most of the year.

Report on your tax return

• the date when you and your spouse separated
• the children's primary place of residence if you and your spouse have joint custody.

Read more about the credit for deficit in capital income (available in Finnish and Swedish, link to Finnish)

Credit due to maintenance obligation

If you pay child support, you may be entitled to tax credit due to maintenance obligation. The credit is paid for child support payable on the basis of an agreement or a court ruling regarding child support. A condition for the credit is that the child has not turned 17 before the beginning of the year.

The credit is 1/8 of the child support you have paid, but no more than €80 per year and underage child. The credit amount is subtracted from the tax on earned income.

Read more about the credit due to maintenance obligation 

Your agricultural and forestry operations will be taxed as a partnership

If you and your spouse were engaged in agriculture or forestry and you continue to own the operations together after the divorce, you will be taxed as a tax partnership.

Read more about establishing a tax partnership (available in Finnish and Swedish, link to Finnish)

Transfer tax

If external funds are used when matrimonial assets are distributed, your apartment or house may be subject to transfer tax.

Read more about transfer tax in the case of an exchange deal or distribution of matrimonial assets

Value added tax

If you and your spouse were engaged in operations that are subject to VAT and if one of you was entered in the VAT register for those operations and the other had liability for taxes, this tax liability ends on the date of separation. Check that your VAT registration is correct after the divorce.

Read more about value added tax

Recurring support to a former spouse

If your former spouse supports you by giving you money or goods based on a voluntary commitment or similar, the support is not regarded as your taxable income.