Legal assistance with alimony and taxes

Questioner

I divorced my husband a few years ago, to whom I was NOT married in community of property. When I got divorced, I was unable to work due to poor health, but I did have to leave the marital home. My income was of course very low. My ex then promised to support me financially on a monthly basis, so that I could rent a reasonable home. My lawyer wrote about this that this should not be qualified as alimony and is earmarked as “net compensation”. On this basis, I did not declare these “net allowances” in my annual tax returns. The tax authorities never responded to this. However, I wonder whether this is correct and whether I perhaps run the risk that I will still be charged for these amounts (afterwards) (perhaps with a fine for withholding income). Can you clarify this for me? Thank you in advance.

Lawyer

In short: you are simply entitled to spousal support. If the support can be regarded as gifts, no tax has to be paid on it. I would be happy to calculate for you how much maintenance you are entitled to.

Questioner

Thanks for your response. Unfortunately I am a bit late with my response, but due to family circumstances I could not respond earlier. That alimony tax has to be paid, was already clear to me. but of course also unsympathetic. In my divorce it was stipulated in a contract that the house would be in my name for 50%. All my money is in that house. The agreement was that he would pay all house costs, such as mortgage payments and tax on the house. My ex died last year and the house was recently sold. Then I get my share from that. As mentioned before, my ex gave me a kind of allowance, to be able to rent a reasonable house. In fact, I got a little bit of my own money every month. The core of the question is whether I have to declare this as income and if so how. You already mentioned that this could be a kind of gift and that it is then tax-free. If I do not declare it now and the tax authorities look behind this, then I may still have to pay, unless such a gift is indeed tax-free. Do you have any ideas for me, that - if I declare it - how to describe it, so that I do not have to pay anything about it?

Lawyer

Did you receive the money by bank? What description was given?

Questioner

Thanks for your response. Unfortunately I am a bit late with my response, but due to family circumstances I could not respond earlier. That alimony tax has to be paid, was already clear to me. but of course also unsympathetic. In my divorce it was stipulated in a contract that the house would be in my name for 50%. All my money is in that house. The agreement was that he would pay all house costs, such as mortgage payments and tax on the house. My ex died last year and the house was recently sold. Then I get my share from that. As mentioned before, my ex gave me a kind of allowance, to be able to rent a reasonable house. In fact, I got a little bit of my own money every month. The core of the question is whether I have to declare this as income and if so how. You already mentioned that this could be a kind of gift and that it is then tax-free. If I do not declare it now and the tax authorities look behind this, then I may still have to pay, unless such a gift is indeed tax-free. Do you have any ideas for me, that - if I declare it - how to describe it, so that I do not have to pay anything about it?

Questioner

Most of it was done in cash, but lately, during his illness, there were also a few bank transfers. As a description 'Living pleasure'.

Lawyer

You can simply, if you wish, specify this as a donation.

Questioner

Most of it was done in cash, but lately, during his illness, there were also a few bank transfers. As a description 'Living pleasure'.