Aims. System parameters of the object LTT560 are determined in order to clarify its nature and evolutionary status.\ud Methods. We apply time-series photometry to reveal orbital modulations of the light curve, time-series spectroscopy to measure radial velocities of features from both the primary and the secondary star, and flux-calibrated spectroscopy to derive temperatures of both components.\ud Results. We find that LTT 560 is composed of a low temperature (T ∼ 7500 K) DA white dwarf as the primary and an M5.5±1 mainsequence star as the secondary component. The current orbital period is Porb = 3.54(07) h.We derive a mass ratio Msec/Mwd = 0.36(03) and estimate the distance to d = 25–40 pc. Long-term variation of the orbital light curve and an additional Hα emission component\ud on the white dwarf indicate activity in the system, probably in the form of flaring and/or accretion events
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