Insolvencies Are On the Rise
Options for Corporate Restructuring The number of corporate insolvencies in Germany continues to rise. According to the Institute of the German Economy (IW), the number of businesses filing for insolvency in the past year was the highest since 2015, and the trend is ongoing. According to IW data, nearly 22,000 companies in Germany filed for […]
Marriage Contract in International Marriages
Ruling of the Berlin Court of Appeal on Immorality Due to Lack of Language Skills Marriages between partners of different nationalities are not uncommon. In such cases, the couple may also choose to enter into a marriage contract. However, the lack of language skills of one partner may create a barrier, but it does not […]
Immorality in Wills
Munich Higher Regional Court on Disinheritance Due to Marriage The freedom to make a will is a highly valued right, but it also has its limits. Wills that are immoral are considered void. Where the line between the freedom to make a will and immorality is drawn is often a point of dispute. The Munich […]
Inheritance Tax Exemption for Family Home
Only the Family Home Can Be Inherited Tax-Free Even if a comparable property is included in the estate, only the family home can be inherited tax-free, provided that certain conditions are met. This was clarified by the Lower Saxony Tax Court in its ruling on 13th March 2024 (Case No.: 3 K 154/23). The heir […]
Bank Loses Right to Claim Interest
Judgment of the ECJ on 13th February 2025 – C-472/23 When taking out a loan with a bank, the borrower is required to pay interest. However, the bank may lose its right to claim interest if it has violated its duty to provide information. The bank is obliged to clearly and understandably inform its clients […]
Mortgage and Land Charge
Securing a Real Estate Loan with a Property Lien To secure the bank when granting a real estate loan, a land charge or mortgage is typically registered in the land register. Both of these are types of property liens, but they have legal differences. Without taking out a loan, purchasing a property is generally not […]
Compensation for Non-Acceptance Due to Delayed Target Setting
Judgment of the Federal Labor Court on February 19, 2025 – 10 AZR 57/24 In addition to a fixed salary, employment contracts may also stipulate variable compensation tied to the achievement of specific targets. However, the employer must provide these targets in a timely manner, as failure to do so can trigger claims for damages […]
Compensation for Delayed Target Setting
Judgment of the Federal Labor Court on February 19, 2025 – 10 AZR 57/24 In addition to a fixed salary, employment contracts may also stipulate variable compensation tied to the achievement of specific targets. However, the employer must provide these targets in a timely manner, as failure to do so can trigger claims for damages […]
Competition violation grounds for immediate dismissal
Judgment of the LAG Cologne – Az. 6 Sa 606/23 The immediate termination of the employment relationship may be justified if an employee forwards emails to a competing company. This was the ruling of the Regional Labor Court of Cologne on June 6, 2024 (Az.: 6 Sa 606/23). An extraordinary and typically also immediate termination […]
Implementation of the NIS 2 Directive
Compliance Requirements With the introduction of EU Directive 2022/2555, commonly referred to as NIS 2, the compliance requirements for companies have increased significantly. NIS 2 is the EU’s response to the growing threat of cyberattacks. The directive regulates the cybersecurity and information security of companies and institutions. Cyberattacks are now considered one of the […]
Expansion of Manufacturer Liability
ECJ Ruling of December 19, 2024 – C-157/23 With its ruling of December 19, 2024, the European Court of Justice (ECJ) has tightened the application of the Product Liability Directive (Case No. C-157/23). According to the ruling, suppliers can also be held liable for defective products if their name or identifying mark fully or […]
Egg Liqueur Cannot Be Vegan
Vegan drink must not be advertised as an egg liqueur alternative – Regional Court of Hamburg, Case No. 406 HKO 76/23 A vegan drink must not be advertised as an “egg liqueur alternative.” This was decided by the Regional Court of Hamburg in a ruling dated April 23, 2024 (Case No. 406 HKO 76/23). […]
Penalty Order for Tax Evasion
Sanctions and Voluntary Disclosure to Avoid Prosecution Instead of a lengthy court procedure, a penalty order (Strafbefehl) may be issued in cases of tax evasion. This offers both advantages and disadvantages for the taxpayer. It may therefore be advisable to file an objection to the penalty order. Without objection, the penalty order becomes legally […]
Gifting Shares for Succession
Gift to Employees – Ruling of the Federal Fiscal Court on Tax Implications – Ref.: VI R 21/22 If a company gifts business shares to employees in order to secure business succession, this does not automatically lead to taxable employment income for the employees receiving the gift. This was decided by the Federal Fiscal […]
Gift Tax on Low-Interest Loans
Ruling of the Federal Fiscal Court dated July 31, 2024 – Ref. II R 20/22 When friends or family members grant each other loans, they often charge only minimal interest or waive it entirely. However, caution is advised. If the interest rate is significantly below the standard market interest rates offered by banks, the […]
OLG Frankfurt on the Withdrawal of Custody
Custody withdrawal is not a tool for sanctioning parents Custody of children is often a major point of contention between parents during separation and divorce. In all matters relating to custody, the child’s well-being is the top priority. Therefore, custody may only be withdrawn from a parent if it is necessary to protect the […]
Forfeiture of Separation Maintenance
Separation maintenance reduced due to misconduct – Higher Regional Court of Munich – 12 UF 265/23 e Before a marriage is officially dissolved, couples in Germany are generally required to undergo a one-year separation period. During this time, one spouse may be entitled to separation maintenance. However, this entitlement can be partially lost if […]
DR Deutsche Rücklagen GmbH Insolvent
Reserves of Homeowners’ Associations at Risk Homeowners’ associations whose reserves were invested in bonds of DR Deutsche Rücklagen GmbH are facing another blow. DR Deutsche Rücklagen GmbH is insolvent. The District Court of Frankfurt opened preliminary insolvency proceedings against the company on March 4, 2025 (Case No.: 810 IN 212/25 D-77). Several property management […]
DEGAG Profit Participation Rights Insolvent
Investor Claims for Damages and in Insolvency Proceedings DEGAG Bestand und Neubau 1 GmbH, DEGAG Kapital GmbH, and DEGAG WI8 GmbH issued profit participation rights in which investors collectively invested approximately 282 million euros. These investors now face significant financial losses, as all three companies are insolvent. The parent company, DEGAG Deutsche Grundbesitz Holding […]
Deletion of Negative Reviews on the Internet
Doctor Entitled to Deletion – Ruling by the Higher Regional Court of Munich, Case No.: 18 U 2631/24 Pre e Products, services, employers – almost everything can be reviewed on the internet. While this can be helpful on one hand, it can also be damaging to the reputation of those affected. However, false and […]
