Roche & Cie

Taxation applicable to parents with joint custody after divorce or separation

12 May 2016

The MP for Haute-Garonne Patrick Lemasle questioned the Minister of Finance on the issue of the tax benefits applicable to divorced parents who have chosen the framework of joint custody.

“Indeed, the inclusion of joint custody is carried out by dividing equally between the former spouses tax benefits to which children qualify as the quotient increases, reductions and tax credits or abatement concerning local taxes.

But some parents pay maintenance for their minor child and can not deduct it from their income; this deduction is not combined with the benefits of calculating family quotient especially fiscal half share. “

Starting parliamentary asked the minister if he could not even be considered a partial payment of alimony paid by the liable parent, in order to ensure equity between parent assuming the shared care of children.

Minister’s Response

Since the entry into force of Law No 2002-305 of 4 March 2002 on parental authority, alternating custody of children to the respective domicile of divorced parents can be a way of exercising parental authority, maintenance charging children then being deemed equally shared between the parents.

Its inclusion in the income tax is therefore done normally by dividing equally between the former spouses tax benefits to which children are eligible (the quotient increases, reductions and tax credits, deductions in respect of local taxes).

Taxpayers can then make any deduction in respect of maintenance payments for minor children since they are considered in the determination of their family quotient.

Correspondingly, the well paid alimony are not taxable to the beneficiary.

However, if it appears that one parent assumes primarily responsible for the children, it is enjoying regardless of alimony paid by addition, parents may provide an agreement that all the tax benefits will be assigned to one of them.

In this situation, the other parent may deduct the alimony he pays eventually, that pension is taxable while in the one who receives. These principles, it is not intended to amend, are discussed in the Official Bulletin of public finances, taxes under reference BOI-IR-LIQ-10-10-10.