Divorce is rarely just about the dissolution of a marriage. In Italy, it is a financial and legal landmark that can alter your life. Whether you are an Italian or an international couple, being aware of the rules and their economic implications is critical to protecting your future. As of 2025, Italy’s divorce law remains steadfast in nature but insidious in impact, especially as it pertains to asset distribution, spousal maintenance computation, and place of financial planning.
The Legal Framework: Separation Before Divorce
Separation and divorce are two separate concepts according to Italian law. Separation is the breakup of the cohabitation but not of the legal union. Only after a period of separation six months if both spouses consent, or one year in contested cases can a couple apply for divorce. This two-stage procedure, regulated primarily by Law No. 898 of 1970 and later modified by Law No. 55 of 2015 (the so-called “short divorce law”), was designed to encourage reconciliation, but also ensure that economic consequences are carefully controlled.
There are two general types of divorce procedures: consensual and judicial. In consensual divorces, the couple mutually decides on the conditions of division of property, custody, maintenance and files a joint petition. These are usually resolved within a few months. In judicial divorces, if the spouses are different, litigation is the path of action, and the process takes years.
In either scenario, the financial planning involved is on a large scale.
Division of Property and Assets
At the center of divorce is who owns what. In Italy, spouses by default have a comunione dei beni joint ownership regime unless they opt specifically for separazione dei beni (separate property) at marriage. Regardless of whose name appears on the title, everything bought during the marriage from savings to real estate is jointly owned under joint ownership. Businesses, concepts, and stock portfolios fall into this category if purchased during the marriage.
Unraveling these shared assets is not a simple math problem. Courts consider whether property is jointly or separately held, the origin of funds used to acquire property, and how family contributions were made. For example, if one spouse worked to maintain the household while the other created a successful business, Italian judges may recognize that indirect contribution in the division.
Property is often a problem. Where there are children, the custodial parent typically gets to remain in the house, even if not legally the owner. This has serious financial consequences, particularly for expats or those with homes abroad, since those properties can likewise be part of the marital pool under some treaties abroad.
Spousal Support
The concept of assegno divorzile divorce allowance has evolved dramatically in recent years. In Italy, alimony was determined by the marital lifestyle prior to 2017. Now, considering several rulings of the Supreme Court, the focus has shifted toward financial independence for both spouses.
If a spouse cannot support themselves after a divorce because of age, health, or career postponements for the marriage like staying home with children or moving for the other’s career they are entitled to support. But today, the courts value independence. A younger, healthy spouse is expected to get back into the labor market, and even part-time work can diminish or abolish a claim.
The sum is highly variable. There is no formula, but courts take into account disparity of income, duration of marriage, age of both parties, and sacrifices of lifestyle. Although they are uncommon, lump sum settlements might be arranged to avoid long-term obligations.
The most common surprise for spouses is that maintenance allowances (assegno di mantenimento) during a separation are different from the allowance after a divorce. The former aims to maintain the status quo and is usually larger and shorter in duration. The latter is smaller, based on the concept of helping not subsidizing a new life.
Post-2017 reforms (Cass. 11504/2017) changed how alimony is calculated. The focus is now on the spouse’s self-sufficiency, not just the lifestyle during marriage. Courts consider:
- Duration of marriage
- Age and health of spouses
- Economic sacrifices (e.g. quitting a job to raise children)
- Earning potential and employment history
Typical amounts range from €300 to €2,000/month, but can go higher based on income disparities.
Taxation, Pensions, and Financial Blind Spots
Even though Italy does not tax alimony, there are hidden costs of divorce that can erode financial security. Transfers of property between ex-spouses can trigger registration taxes when done outside of a court decree. Revaluation of assets particularly on real estate can trigger capital gains taxes upon resale. And if there are cross-border elements to the divorce, tax treaties and double taxation hazards must be considered.
Another issue is the Trattamento di Fine Rapporto (TFR), or end-of-contract pay. If one spouse receives this cash at or shortly after the time of divorce, the other could be due for a proportion of it, usually 40% depending on the number of years they had been married and economically reliant. Even pensions are not ruled out; in certain cases, an ex-spouse can claim a survivor’s pension, provided that they were still being maintained and had not re-married.
For the rich, divorce can even impact corporate holdings, estate plans, and trusts. Business appraisals must be accurate and reliable. Offshore holdings must come out of the closet. And while Italy does not recognize prenuptial agreements as such by law, marital property contracts signed before a notary are binding according to the law.
In short:
- Divorce is not a taxable event, but asset transfers may trigger capital gains, especially for property.
- Alimony payments are not tax deductible in Italy (unlike in some jurisdictions).
- If one spouse keeps a jointly owned business or property, it may require notarial deeds and property transfer taxes.
- Children’s support is non-deductible, but medical or educational expenses may qualify for deductions.
Foreigners and International Marriages
Italy adheres to EU Regulation 1259/2010 (Rome III), allowing couples to choose the law applicable to their divorce. If not specified, the law of the common habitual residence or last shared residence applies.
U.S. or U.K. citizens divorcing in Italy should also verify the implications back home—especially in countries where property regimes or alimony laws differ greatly.
Why Financial Planning and a Good Accountant Matters
With the fiscal bombshell that divorce is, it’s not only smart to hire a professional accountant early in the process, it’s essential. A seasoned accountant can do more than just balance books. They help create realistic post-divorce budgets, forecast future obligations, and analyze the financial ramifications of settlements. They can also detect tax exposures and advice on restructuring assets or conveying ownership in legally sound terms.
In addition, Italy’s legal system is paper-intensive. A well-structured financial file can accelerate negotiations, minimize litigation, and enhance credibility in court. Particularly for international couples, an accountant who understands cross-border taxation can avoid expensive errors such as assuming U.S.-style alimony deductions are available in Italy (they’re not).
At Accounting Bolla, we understand that divorce is as much about the future as it is about the past. We give you advice tailored to your situation, whether you’re dealing with real estate, family business holdings, or cross-border asset reporting. Divorce can end a relationship, but it shouldn’t end your economic security.
Italian divorce is not merely a judicial process, it’s an achievement that necessitates openness, planning, and professional advice. Equipped with the proper know-how of the law and financial planning, one can also weather even the most complex divorce with stability and confidence.
Whether you are just beginning to consider separation or are deep into proceedings, the decisions you make today will affect not only your finances, but your peace of mind for years to come. And that is something to prepare for carefully, and with confidence.
Calcola la tua esposizione finanziaria in caso di divorzio in Italia
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Would you like to read about similar topics? Then tale a look at our related articles here, Raising Kids in Italy: Fiscal Benefits and Supports for Families, Italy’s Non-Married Partner Residence Permit: A Detailed Overview and Obtaining Italian citizenship for a spouse.
