Berlin Will Poses Tax Disadvantages

Bequests and Gifts   For married couples, the so-called Berlin Will or spousal will is particularly popular. It offers the advantage that after the death of one spouse, only the surviving partner inherits initially, thus protecting them from the claims of other heirs. However, it also has the disadvantage that tax exemptions on inheritance are […]

Ex-Wife Not Liable for Husband’s Loan

Judgment of the Cologne Regional Court on Co-Liability in Loans – Case No.: 8 O 232/22   A divorced spouse is not liable for a loan that the ex-partner took out alone during the marriage. This was decided by the Cologne Regional Court in a ruling dated October 19, 2023 (Case No.: 8 O 232/22). […]

Will Valid Despite Divorce

Decision of the German Federal Court of Justice (BGH) of May 22, 2024 – Case No.: IV ZB 26/23   Even after a divorce, a will or inheritance contract in favor of the spouse can remain valid if the couple created the testamentary disposition before marriage. The German Federal Court of Justice (BGH) made this […]

Immoral Damage in Online Trade

Judgment of the Higher Regional Court of Hamm dated April 16, 2024 – Ref. No.: 4 U 151/22   “Rate your purchase” – customers are often invited to rate their online purchases in such or similar terms. There are always competitors who take advantage of this opportunity to damage their rivals on the internet by […]

Federal Labor Court on Occupational Pensions

Judgment of the Federal Labor Court from August 20, 2024, Strengthens Employers – Ref. No.: 3 AZR 285/23 In the case of salary conversion for occupational pensions, employers are required to contribute. However, collective agreements may include different provisions. This also applies if the collective agreement was concluded before the First Occupational Pensions Strengthening Act […]

Contract Void Due to ‘Under-the-Table’ Agreement

Evidence for an “Under-the-Table” Agreement – Judgment of the Regional Court Itzehoe, Case No. 2 O 136/23   “Under-the-table” work can be sanctioned with substantial fines or imprisonment. If a client and a contractor make such an agreement, they not only commit a crime, but the client also cannot claim their money back if the […]

Misleading Advertising with Hair Growth Products

Violation of the Health Claims Regulation   A pharmaceutical company advertised that it could provide thicker hair within a few weeks. However, the claims were deemed misleading to consumers and a violation of the Health Claims Regulation, as decided by the Regional Court of Bamberg. Consequently, the court prohibited the advertising with these claims in […]

BFH on the Amendment of Final Tax Assessments

Correction of the Tax Assessment After an Audit – BFH III R 14/22   If profit is determined using the income-excess method, the manner in which the taxpayer has maintained their records, which only came to the attention of the tax office through an audit, can lead to a correction of a final tax assessment. […]

BFH on Inheritance Tax Benefits

Parking Garage is Not Business Property – Ruling of the BFH on February 28, 2024, Ref.: II R 27/21   Real estate that is leased to third parties does not qualify as business property but rather as administrative property. As a result, such real estate cannot be granted tax benefits under inheritance tax law. This […]

Tax Benefits for Non-Profit Housing

Tax Incentives for Housing through Charitable Purposes   In response to high rents and housing shortages, the German government is reintroducing non-profit housing. In early June 2024, the federal cabinet decided, as part of the 2024 Annual Tax Act, to include the “promotion of non-profit housing purposes” as a new charitable purpose in the Fiscal […]

CJEU on Jurisdiction Agreements

Jurisdiction Agreement Without Additional Foreign Elements   On February 8, 2024, the Court of Justice of the European Union (CJEU) ruled that two contractual parties residing in the same EU member state can agree to the jurisdiction of a court in another EU member state, even if the contract otherwise has no connection to that […]

Pension Rights Equalization in Divorce

Division of Pension Entitlements   When a marriage has irretrievably broken down and ends in divorce, it is essential to clarify the financial claims between the spouses. Pension rights equalization plays a crucial role in securing retirement benefits. This process involves dividing the pension entitlements acquired by both partners during the marriage. Unlike the division […]

Child Support in Shared Custody Arrangements

Ruling of the Karlsruhe Higher Regional Court – Case No.: 5 UF 219/23   After parents separate, it was once common for the children to live with one parent while the other parent had visitation rights, such as on weekends. Nowadays, parents increasingly choose a shared custody arrangement, where the children live alternately with both […]

Liability for Cookies Without Consent

Judgment of the OLG Frankfurt from June 27, 2024 – Az.: 6 U 192/23   If cookies are stored on a user’s devices without their consent, not only the operator of the website can be held liable, but also the provider of the tracking software used. This was decided by the OLG Frankfurt in a […]

ProReal Europe 9 / 10 – Imminent Risk of Default

Mandatory Disclosure by the ProReal Companies   Investors have put around 278 million euros into ProReal Europa 9 GmbH and ProReal Europa 10, providing the companies with subordinated loans. They now face significant financial losses. This was announced by the two ProReal companies in a mandatory disclosure according to § 11a paragraph 1 of the […]

Trademark Law in Simultaneous Registration Cases

Judgment of the LG Hamburg from July 19, 2024 – Az.: 327 O 195/23   If you want to protect your trademark, you shouldn’t wait too long to register it. Otherwise, someone else might beat you to it. It can also happen that two parties register their trademark rights for a product on the same […]

Challenging Copyright at the BGH

Right to Recognition of Authorship – BGH I ZR 102/23   Even if authorship is contested only towards the author, this can still constitute a violation of copyright. The Federal Court of Justice ruled on June 27, 2024, making this clear (Case No.: I ZR 102/23). According to § 13 of the Copyright Act (UrhG), […]

Removal of a Shareholder-Director

OLG Munich on Removal for Important Reasons – Case No.: 23 W 354/23e   Even seemingly small errors in bookkeeping can be an important reason for the removal of a shareholder-director. This is evident from a ruling by the OLG Munich dated May 25, 2023 (Case No.: 23 W 354/23e). The removal of a director […]

Undeclared Cash Agreement in Real Estate Purchase

Purchase Agreement Not Void Due to Agreement to Evade Taxes – BGH V ZR 115/22   Despite an undeclared cash agreement, a real estate purchase agreement does not necessarily have to be invalid. This was decided by the BGH in a judgment dated March 15, 2024 (Ref.: V ZR 115/22). This is possible if the […]

Deceptive Packaging Remains Deceptive Packaging

No Difference Between Brick-and-Mortar and Online Sales – BGH I ZR 43/23 Deceptive packaging remains deceptive packaging, whether it is displayed on store shelves or sold online. The method of distribution does not matter, as the Federal Court of Justice (BGH) clarified in its ruling on May 29, 2024 (Case No. I ZR 43/23). Advertising […]