Separation & Divorce: Financial Guide

The First Financial Steps

Once the separation is certain, you should act quickly to secure your financial situation.

Do Immediately

1. Open your own bank account: If you don't already have one, set up your own checking account right away. Transfer your share from the joint account.
2. Revoke powers of attorney: Withdraw your ex-partner's power of attorney over your accounts.
3. Create an overview of assets: Document all assets and debts as of the date of separation.
4. Document the date of separation: This date matters legally. Put it in writing.
5. Redirect your mail: Have important documents (account statements, bills) sent to your new address.

In the First Few Weeks

• Consult a family law attorney
• Clarify maintenance obligations (children, spouse)
• Review your insurance policies (liability, health, split household contents insurance)
• Clarify who receives Kindergeld (child benefit) and the child tax allowance
• Inform the Finanzamt (tax office) about the separation (for the following year)

Understanding Trennungsunterhalt (Separation Maintenance)

During the separation period (at least 1 year before the divorce), the financially weaker partner can claim Trennungsunterhalt (separation maintenance).

Who Is Entitled to Trennungsunterhalt?

The partner with the lower income is entitled, provided the other partner can afford to pay. The claim exists automatically — but you have to actively assert it.

How Much Trennungsunterhalt?

The calculation follows the 3/7 method:

1. Determine the adjusted net income of both partners
2. Calculate the difference
3. 3/7 of the difference = maintenance entitlement

Example: Partner A earns €4,000 net, Partner B €1,500. Difference: €2,500. Maintenance: 3/7 × €2,500 = approx. €1,070/month.

Good to Know

• No obligation to work during the first year
• Self-retention amount for the paying partner: €1,600/month (2026)
• Only applies during the separation period, not after the divorce

Child Support Under the Düsseldorf Table

Child support belongs to the children, not to the parent who cares for them. The parent the children don't live with pays cash maintenance. The other parent provides care instead, through day-to-day support.

The Düsseldorf Table 2026

The Düsseldorf Table sets the minimum maintenance amount, tiered by the paying parent's income and the children's age:

• Ages 0-5: from €480/month (at minimum income)
• Ages 6-11: from €551/month
• Ages 12-17: from €645/month
• Age 18+: from €689/month

At higher incomes, maintenance increases according to the income bracket.

Offsetting Kindergeld

Kindergeld (€259/child) is offset at half its value. So the amount actually owed is the table amount minus €129.50.

Post-Marital Spousal Maintenance

Unlike Trennungsunterhalt, post-marital spousal maintenance (after the divorce) is not automatic. It requires specific grounds.

When Are You Entitled?

• Childcare maintenance: caring for a child under 3
• Age-related maintenance: too old to be expected to work
• Illness-related maintenance: unable to work for health reasons
• Top-up maintenance: your own income isn't enough to maintain the marital standard of living
• Education-related maintenance: completing training or education

Duration and Limits

Post-marital spousal maintenance is limited in time. The trend in case law: the shorter the marriage, the shorter the maintenance claim. For very long marriages (20+ years), however, it can also be unlimited.

Equalization of Gains: Who Gets What?

The Zugewinnausgleich (equalization of accrued gains) is the most important asset settlement in a divorce. It applies automatically unless a prenuptial agreement states otherwise.

The Principle

The increase in each partner's assets during the marriage is compared. Whoever gained more must pay half the difference to the other.

Example Calculation

• Partner A: starting assets €20,000, final assets €120,000 → gain €100,000
• Partner B: starting assets €0, final assets €30,000 → gain €30,000
• Difference: €70,000
• B's equalization claim: €35,000

What Counts (and Doesn't) Toward the Gain?

• Counts: salary increases, appreciation of real estate, savings, pension entitlements
• Doesn't count (privileged acquisitions): inheritances, gifts, damages for pain and suffering

Cut-Off Date for Final Assets

Final assets are calculated as of the date the divorce petition is served — not the date of separation or of the divorce itself!

The Shared Property

The property is often the biggest point of conflict. There are several options:

Option 1: One Partner Takes It Over

One partner buys out the other and takes over the mortgage alone. The bank has to agree to this, and the financing needs to be affordable.

Option 2: Sell It

The property is sold and the proceeds, after deducting debts, are split. Often the cleanest solution, even if it's emotionally difficult.

Option 3: Keep It Jointly

Possible, but problematic: who decides on repairs? What if one partner wants to sell? Only recommended as a temporary solution.

Right of Residence During Separation

During the separation period, the family court can grant one partner the sole right to live in the home, e.g. if children live in the household. This applies regardless of the ownership situation.

Using State Support

If your income is low after a separation, several forms of state support are available to you:

Unterhaltsvorschuss (Advance Maintenance Payment)

If the other parent doesn't pay child support, the Jugendamt (youth welfare office) steps in. It's paid until the child turns 18, up to the minimum maintenance amount minus Kindergeld.

Bürgergeld (Basic Income Support)

Single parents with low income can apply for Bürgergeld. The standard rate in 2026 is €563 (for a single person), plus housing costs, plus a supplement for single parents (12-60%).

Wohngeld (Housing Benefit)

If you have low income and high rent, you can apply for Wohngeld. It's income-dependent and based on the rent level in your area.

Kinderzuschlag (Child Supplement)

If you work but still struggle to make ends meet, you may be entitled to the Kinderzuschlag: up to €292 per child (2026).

Tax Relief for Single Parents

For tax purposes, there's a relief allowance for single parents: €4,260 for the first child, plus €240 for each additional child. You're placed in tax class II.

Financial Checklist for a Separation

Immediately (First Week)

• Open your own checking account
• Revoke powers of attorney for joint accounts
• Put the date of separation in writing
• Create an overview of assets (accounts, investments, property, debts)
• Secure important documents (account statements, tax assessments, land register extract)

First Weeks

• Consult a family law attorney
• Clarify and claim maintenance (separation, children)
• Separate insurance policies (liability, household contents, health if applicable)
• Decide who receives Kindergeld
• Inform the tax office (plan the tax class change)

Before the Divorce

• Calculate the equalization of gains
• Check the pension equalization (Versorgungsausgleich)
• Find an arrangement for the shared property
• Settle debts
• Negotiate/settle post-marital spousal maintenance

Frequently Asked Questions About Finances During a Separation