A cheaper divorce is possible! - The financial implications of divorce

In Hungary - based on statistics - an average of about 50 divorces take place every single day. Divorce can be very difficult not only emotionally, but also financially. Let's see how much!

Based on the current Hungarian legislation, during the legal proceedings for divorce, the parties must bear duties (the fee of procedure) and court costs.

The duty for divorce proceedings is one of the predetermined fees, which is currently HUF 30,000.

The party initiating the procedure must pay the duty at the same time as submitting the application to the court, unless the amount of duty must be determined afterwards. In the latter case, the duty must be paid by the person ordered to do so by the court.

The duty is higher if the disputed issues between the parties do not only cover the dissolution of the marriage, but also its ancillary issues. In such cases, the duty (6%) must be paid based on the value of the entire property, which can be a maximum of HUF 1.5 million.

The duty must be paid to the court. The parties may also have so-called court cost: the costs of court proceedings shall include all expenses the party has necessarily incurred during or prior to the proceedings in a causal relationship with the enforcement of a right in the action, including the loss of income stemming necessarily from having to appear before the court. The court decides on the bearing of court costs during the proceedings, regardless of who „won” the lawsuit, taking all the circumstances into account. The court costs include the fee of the legal representative as well, and it may also include the fee of the expert assigned during the procedure or the fee of the assigned interpreter. During a longer procedure, both the expert's fee and the lawyer's fee can be a significant amount.

In order to increase the efficiency of communication with a legal representative, as well as to possibly reduce the costs incurred, we would like to provide some practical advice below.

§ The proper transfer of information plays an extremely important role. All the relevant data and information should be written down and sent to the lawyer by e-mail. Important information will be easier to find this way. It is also essential that we inform our lawyer about important changes in our lives: for example, when we move or have a new partner

§ It is also essential that we hand over all the documents or copies required in the lawsuit to the lawyer: such as the marriage certificate, the prenup (if you have one), or documents relating to children.

§ In Hungary, the spouses have the option to "mutually request divorce on the basis of their final understanding reached without undue influence."

This form of dissolution is only possible is the spouses have agreed on the exercise of parental custody over their common child, the contact arrangements between the parent living separately and the child, child maintenance, use of the matrimonial home, and, if claimed, spousal maintenance, and their settlement reached before the court is approved by the court.

The duty must be paid even if the parties can come to an agreement, however, if the court approves the agreement, the court costs will be significantly lower than in the case of a lengthy lawsuit, and the parties can decide who has to bear the court costs. The legal representatives also provide comprehensive assistance in formulating the content of the agreement, the cost of which is also much lower than if endless litigation were to take place.

§ We recommend that if you have questions during the procedure, ask them in detail and in writing, so that your legal representative can give you a more specific and faster answer. At the same time, in order to represent your interests as successfully as possible, the lawyer may also need information. It is important to ensure that we respond to such requests in a timely and meaningful manner.

If you would like to divorce your partner, or need help in solving other family law disputes, feel free to contact our office! We have a lot of experience in solving family law disputes quickly and discreetly - but if necessary, with perseverance and dedication.

Divorce can raise significant questions not only in personal life but also regarding the future of a business. This is particularly true when one spouse owns a company or when the spouses have built a business together during their marriage. In such cases, an important question arises: if the company is registered in only one spouse’s name, can the other spouse claim a share of its value?

The answer depends on several factors, including when and how the business interest was acquired, the period during which the spouses’ marital community of property existed, and whether joint marital assets were used to finance the business.

When transferring a high-value property, the key question is not only under which legal title the property can be acquired, but also what tax or duty consequences arise from the chosen legal arrangement. This is particularly relevant where the acquirer does not fall within the scope of persons exempt from inheritance or gift duty. This raises an important question: which legal arrangement – inheritance, gift, maintenance agreement, inheritance contract or trust – may result in the lowest duty burden?

Notice: This article does not constitute legal advisory services, and does not necessarily match the interpretation of the applicable laws by the authorities. This article is for general information only.

In today’s modern legal environment, the documented and professional examination of digital evidence, as well as the protection of devices and user accounts, has become increasingly important in legal disputes and proceedings.

Our firm’s cooperating partner in this field is Biztonság Akadémia Kft.

The professional expertise of our partner is provided by Tamás Durmics, an independent IT security expert and ethical hacker with more than 25 years of experience in information technology and security. His work focuses on documented and independent examination methodologies, as well as on presenting technical findings in a clear and comprehensible manner suitable for use in legal proceedings.

One of the most common situations giving rise to the greatest number of conflicts during probate proceedings is when the deceased dies without making a testamentary disposition. In such cases, the fate of the assets and debts is determined by the statutory order of succession under the Hungarian Civil Code. Although the rules are clear, a significant proportion of clients are not aware of the more important changes introduced by the Civil Code currently in force, particularly with regard to the rights of the surviving spouse or the extent of the compulsory share.

Under the rules currently in force, the general rate of personal income tax (PIT) is 15 per cent of the tax base. In everyday language, many people lump the different concepts together and simply call every case in which no tax is deducted from their gross salary a “tax exemption.” From a legal-dogmatic perspective, however, classical tax exemption must be sharply distinguished from tax allowances. While tax-exempt revenues do not form part of the tax base in the first place, the tax system also recognises different rules that result in a reduction of the private individual’s tax: these are tax allowances reducing the consolidated tax base.

A particular characteristic of personal income tax is that these tax allowances and tax exemptions may be claimed only against income falling within the consolidated tax base and the tax thereon, and exclusively up to that amount.