The phenomenon of divorce has expanded in Israel over the years: according to CBS data, in 2000 10,723 couples divorced in Israel, and in 2019 the number had already reached 15,992 couples.
Everyone knows that in a divorce a division of property must be made.
However, few know that when divorcing one should also consider tax considerations in order to lose as little money as possible.
According to attorney and accountant Rami Arieh, "Even before reaching an agreement on how to divide the property between the spouses, it is important to get advice and guidance regarding the various tax aspects. Proper taxation planning, including careful examination of the various options and consideration of timing and execution, can save "The couple has a lot of money, to avoid high tax charges and to leave more money and assets to them and their heirs."
Everything you need to know
The couple has a jointly owned apartment.
Should he sell it, or should he rent and divide the rent?
"The issue of selling or renting is not necessarily only taxable, it is also an emotional question - whether the couple wants to continue the relationship between them owning the apartment - and depends on the economic viability of selling the apartment, compared to the yield from renting."
In terms of taxation, as long as it is a single apartment of both spouses, then the date of the sale does not matter - in any case they deserve a full exemption from praise tax on the assumption that it is not a luxury apartment.
"If one of them has another apartment, or one of them intends to buy an alternative apartment, it seems that selling an apartment as early as possible will be better with the couple."
Is a divorced parent entitled to certain tax rebates?
"Indeed yes. A divorced parent is entitled to benefits at additional credit points for a single parent, payment of child support, and in fact the fact that his passive income will be taxed regardless of the other spouse's income. The extent of the benefit itself may vary for each divorced parent."
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