In its judgment of 9 July 2026 (III R 8/25), published on 1 October 2026, the BFH addressed the allocation of child benefit (Kindergeld) when a child lives in the households of both separated parents beyond mere visitation. The Court held that cash maintenance payments by the non-custodial parent do not automatically establish a primary household for benefit purposes. Instead, the decisive factor is the child’s actual center of life, assessed through a comprehensive factual analysis including duration of stays, integration into family life, and parental care responsibilities. The ruling refines the “primary entitled parent” concept under § 64 EStG and provides guidance for family courts and tax offices in shared-custody scenarios.
Key Takeaways
- Center-of-Life Test Prevails: The BFH emphasized that the child’s primary residence is determined by qualitative integration, not merely quantitative overnight counts or financial contributions.
- Cash Maintenance Insufficient: Regular child support payments alone do not shift the benefit entitlement; the paying parent must demonstrate substantial daily care and household integration.
- Administrative Clarity: Tax authorities now have a clearer framework for deciding competing Kindergeld claims, reducing litigation and ensuring consistent application across federal states.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
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