There are several ways to divide your and your former partner's old-age pension.
What is the best choice for you?
There are advantages and disadvantages whether you choose the standard rules, use a non-standard division, split your pension or do not divide at all. Whether this is right for you and your former partner depends on what is important to both of you and your personal situation. First check how your pension is arranged in MijnZwitserleven. And discuss with each other which pros and cons you consider most important. Discuss whether choices are suitable or not with the person helping you with your divorce.
Division according to standard rules
Under the standard rules, your former partner is entitled to half of the old-age pension you accrued during your marriage or registered partnership. This is known as 'equalisation'. The division of old-age pension is laid down in the Dutch Equalisation of Pension Rights in the Event of a Divorce Act (WVPS). Of course, you are also entitled to half of your former partner's old-age pension.
Pros
- You do not have to make any arrangements with your former partner.
- If your former partner passes away before their retirement date, you will get back the part that went to them when the division was made.
Cons
- Your former partner will not have their own old-age pension from your pension scheme and cannot make their own choices. Your former partner will be dependent on you.
- You maintain a link with your former partner through your pension scheme.
Non-standard division
Alternatively, the two of you can agree on a different apportionment. For example 60% for your former partner and 40% for you. Or division of the old-age pension you accrued before your marriage or registered partnership, during the time you lived together unmarried. If under the standard rules you do not have to divide old-age pension, you can agree together to do this anyway.
Pros
- Together with your former partner, you can decide the division of the old-age pension.
- If your former partner passes away before their retirement date, you will get back the part that went to them when the division was made.
Cons
- Any non-standard division must be agreed by both you and your former partner.
- our former partner will not have their own old-age pension from your pension scheme and cannot make their own choices. Your former partner will be dependent on you.
- You maintain a link with your former partner through your pension scheme
Splitting
You can also split the retirement pension instead of dividing it. You then give your former partner their own right to a pension. This is called conversion. Your former partner will receive this pension when they retire.
Pros
- Your Uniform Benefit Statement (UBS) will be clearer. It will show only your own pension.
- You no longer have to consider your former partner. For example, if you want to take a lump sum payment, bring forward or postpone your retirement date or choose to take a fixed or variable pension.
- Your former partner will have their own old-age pension and can make all their own choices. Your former partner can even choose to merge this pension with their own pension with another pension provider (with a transfer of accrued benefits). Your former partner will not be dependent on you and can decide when their pension comes into payment.
- Your former partner’s right to a special partner's pension will also be converted into their own right to an old-age pension. Your former partner will receive a higher old-age pension.
Cons
- Splitting is only possible if you both agree.
- Your former partner’s right to a special partner's pension will also be converted into their own right to an old-age pension. Your former partner will lose their right to a special partner’s pension.
- If your former partner passes away, their part of your pension will not be returned to you.
No division
You can also agree not to divide your old-age pension at all. In that case, you will retain full entitlement to your own old-age pension. You can make this arrangement, for example, if you have savings or assets that you can divide with your former partner.
What do you have to do?
You need to send us the 'Notification form in connection with division of old-age pension upon divorce’ within 2 years of your divorce or the end of your registered partnership. This informs us that you are divorced or that your registered partnership has ended, and tells us how you wish to divide your old-age pension.
If you opt for the standard legal division, one former partner (or both former partners) should sign the form. If you make different arrangements for the division of your old-age pension, both former partners should sign the form. Please also send us the document in which you have recorded these arrangements, such as a divorce covenant or other similar agreement.
If you do not inform us of the arrangements you have made with each other within 2 years, the standard rules will apply, however we will not divide your old-age pension for you. From your retirement date, you yourself will have to pay your former partner the old-age pension to which they are entitled. This could be rather complicated. For example, you will have to calculate the amount yourself and include the payment to your former partner in your tax return.
Need advice on your choices?
We are happy to help you make choices for your pension. These choices may have major financial implications. Our guidance covers only your pension scheme with Zwitserleven. Whether a choice is right for you obviously depends on your whole personal situation, now and in the future.
Perhaps you should consider contacting an adviser, who can give you an overview of all your financial affairs and help you to make the most suitable choices.