First Home Relief and Separation

Dealing with a separation is an emotionally complex process, often compounded by financial and property concerns. One of the most frequent and delicate questions concerns the fate of “first home” tax relief, especially when one spouse is forced to leave the family home. Understanding how the law protects these benefits is crucial for making informed decisions and safeguarding your interests. As a family lawyer in Milan, Avv. Marco Bianucci guides his clients through these complexities, ensuring that every financial aspect is handled with the utmost care.

The Regulatory Context: How to Maintain Benefits

To benefit from tax relief on the purchase of a first home, Italian law imposes certain requirements, including transferring residency to the municipality of the property within 18 months and prohibiting sale for 5 years, under penalty of forfeiture of benefits. During a separation, the spouse who owns the property may be ordered by the judge to leave the home, which is assigned to the other spouse as the custodian of the children. This forced transfer could, in theory, lead to the loss of the residency requirement. However, established case law, including that of the Court of Cassation, has clarified that marital crisis constitutes a force majeure. Consequently, the spouse who leaves the family home following a separation order does not lose the tax relief obtained at the time of purchase.

The Bianucci Law Firm's Approach

Protecting assets during a separation is not automatic but the result of a precise and personalized legal strategy. The approach of Avv. Marco Bianucci, a family lawyer with extensive experience in Milan, focuses on defining clear and forward-looking separation agreements. It is essential that the court order assigning the marital home is correctly formalized by the judge, whether in a consensual or judicial proceeding. This document becomes the fundamental proof to demonstrate to the Revenue Agency that the change of residence was not a voluntary choice but a direct consequence of the family crisis, thus fully safeguarding the tax benefits. Superficial management of this aspect can lead to demands for payment of taxes, penalties, and interest even years later.

Frequently Asked Questions

If I move due to separation, do I lose my first home tax relief?

No. If your move is a direct consequence of the judge's order assigning the marital home to the other spouse, consistent case law holds that tax relief is not lost. Family crisis is considered a force majeure that justifies the failure to maintain residency in the property.

What happens for IMU purposes for the assigned marital home?

The spouse to whom the marital home is assigned, even if not the owner, becomes the liable party for IMU payment. Consequently, the owning spouse who had to leave the property is exempt from paying the tax for that residence, as they no longer have availability of it.

Can I buy another home with “first home” relief after separation?

Yes, you can. The spouse who had to leave the family home assigned to the ex-partner can purchase a new property using “first home” relief. This is because, for tax purposes, the old home is no longer at their disposal, meaning one of the prohibitive requirements for accessing the benefit again is no longer met.

What happens if we sell the house within 5 years of purchase?

If the house is sold before 5 years have passed, you lose the tax benefits, unless you repurchase another home to be used as a first home within one year of the sale. Separation does not change this general rule. It is crucial to define in the agreements how to manage the sale proceeds and any tax consequences.

Request a Legal Consultation in Milan

Managing financial aspects in a separation requires expertise and strategic vision to prevent future tax and legal complications. If you are facing this situation and wish to understand how to protect your rights and assets, it is essential to rely on a professional. For an assessment of your case, contact the Bianucci Law Firm in Milan. Avv. Marco Bianucci will provide a detailed analysis and a personalized path to protect your interests.