Division

economic-dictionary

Fractionation is the act and result of dividing a whole into several parts. That is, it can be understood as a synonym to split or separate.

In other words, fractioning is what you get by dividing an item, for example, a debt, which will be distributed in different installments that can be paid in the future (usually adding the collection of interest).

That is, instead of having a single amount, for example 5,000 euros to pay at the end of the month, said debt could be divided into five installments, which will total more than 5,000 euros because they will include financial expenses based on an interest rate .

For example, if the monthly interest rate were 5% and all the installments were equal, each of the monthly payments would be 1,154.87 euros. This would be a case of the French amortization system. For the calculation we use the formula presented in the article in the link.

It can also refer to the fractioning of a coin. For example, the dollar cent is a fraction of the US dollar, just as the kopeck is a fraction of the Russian ruble (one Russian ruble is divided into 100 kopecks).

Tax division

The tax division is a mechanism to defer a pending obligation with the tax collecting authority. In this way, the taxpayer can pay his debt in a period after its maturity and even divide it into different installments.

It should be noted that to access this benefit, certain requirements may be required, such as, for example, that the user does not have a current conviction for a tax or customs offense.

Land subdivision

Another meaning of subdivision, from the scope of urban planning, is a group of blocks and lots where it is planned to build a population center. Thus, a series of works are being developed that will allow, for example, access to basic services such as drinking water and electricity.

Within Mexican regulations, for example, these subdivisions can be classified into two:

  • Housing: In its lots, houses of different types are built, from residential to social interest.
  • Specials: They are used both for recreation and for agricultural activities (farms, crops, etc.) and commercial and industrial activities. This, in spaces outside the cities.

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