Family home

Translation generated by AI. Access the original version

Deduction for investment in habitual residence after divorce

Have you divorced and now own 100% of the home you used to share with your ex-partner? You may wonder if you can deduct in your tax return the full amount you pay for the mortgage of that home, or just a portion. The General Directorate of Legal Security and Public Faith (DGSJFP) has clarified this issue because many people have the same doubt after a separation.

The main point is that the deduction for investment in habitual residence no longer exists for new purchases since 2013. However, those who bought their house before that year, and were applying the deduction in previous years, can continue to do so under a special regime. However, this only remains in place if the home continues to be your main residence and you had already started deducting before that change in the law.

What happens if you end up with the entire home after separating? According to the courts, you can deduct 100% of what you pay for the original loan, as long as you and your ex-partner were both deducting before and there is still deduction to apply. However, the amounts you pay to keep the extra part of the home (for example, if you have to pay compensation to your ex-partner that you will finance with another loan), do not entitle you to a deduction if the money does not come from the initial loan or if the transaction was after 2012 and is not due to the termination of joint ownership.

In summary, you can only deduct what corresponds to the mortgage loan that existed before the divorce and under certain conditions, not for any money you use to become the sole owner, and as long as you continue living in the house.

In disputes regarding the family home after the family crisis or during and after the processing of a family process, our professionals will provide you with the necessary legal assistance and take the appropriate actions as necessary
Family home