Divorces on the Rise in Greece due to Financial Crisis

Excessive taxation and the dramatic drop of the average Greek income has; among other things, led to a rise in the number of divorces around the country.

More and more couples state they are separated, while divorces have risen by 20% over the last years, according to official data.

Most of these divorces are a direct effect of the financial crisis, with couples getting legally separated in order to enjoy state and electricity benefits, less taxation, and even to eliminate their bank loans.

Virtual, or “white” divorces are more usual in cases where couples are involved in family businesses, as they can avoid bankruptcy, high taxation, insurance and revenue taxes.

In such cases, one of the two parties divorced can avoid a potential bank account and assets freeze. After the divorce is issued, the two parties can submit separate financial statements.

The wife then gets custody of the children; her financial statement to the Revenue Service reflects the custody, which in turn lowers, or even eliminates her taxes.

Divorce, or even a simple separation, can affect dire financial conditions, help the parties avoid home foreclosure, generate family benefits and even offer cuts in property taxes.