1. Introduction: What is Pension in Divorce and Why It Is Important
Pension in divorce concerns the legal distribution of accrued pension rights between ex-partners in accordance with the Pension Rights Equalisation Act (Wet VPS). In this guide, you will learn what pension distribution entails, how it works, and what crucial steps you need to take to secure your financial future.
When you get divorced, there is a lot at stake. In addition to emotional aspects, you have to make important financial decisions that affect your pension and future income. The distribution of pension rights is often one of the most complex parts of a divorce, but also one of the most important for your financial security.
This comprehensive guide covers:
- Your legal rights in pension distribution
- Step-by-step procedures and important deadlines
- Practical examples and common mistakes
- Concrete steps for your personal situation
Whether you are just starting the divorce process or are already in the middle of it, this information will help you make informed decisions about your pension and that of your ex-partner.
2. Pension Distribution in Divorce: Key Concepts and Definitions
2.1 Key Concepts
Pension division means that the pension accrued during your marriage or registered partnership is divided between you and your ex-partner. This happens automatically by law, unless you make other arrangements.
The Pension Rights Equalisation Act (Wet VPS) has regulated this since 1995. This Act stipulates that both partners are entitled to half of the pension accrued during the relationship.
Important concepts:
- Old-age pension: The pension you accrue with your employer or your own company
- Partner pension/survivor’s pension: Benefit for your partner if you die
- State pension: State pension that everyone living in the United Kingdom automatically accrues – this is NOT divided
- Equalisation: The standard 50/50 division of pension rights
- Conversion: Conversion of your entitlement to part of your ex-partner’s pension into your own personal pension entitlement
2.2 Legal frameworks and relationships
Pension distribution is part of your overall divorce settlement. In your divorce agreement or divorce settlement, you set out how you want to divide your pension. This is in addition to other agreements about alimony, the distribution of assets such as savings and any partnership conditions.
Pro Tip: Pension distribution works differently from the distribution of other assets. For example, while you can distribute your savings immediately, your pension will only be paid to your ex-partner when they retire.
3. Why pension distribution is crucial in divorce
Pension distribution has a huge impact on your financial situation after the age of 67. Without proper agreements about pensions, the partner who accrued less pension may end up in poverty.
Financial impact in figures:
- An average pension distribution in the event of divorce involves amounts between €50,000 and €200,000 in accrued rights
- Partners who did not work or worked part-time often accrue 40-60% less pension
- After pension distribution, the disadvantaged partner receives an average of £200-500 extra pension income per month
Why the law offers this protection:
- Both partners contributed to the family, including the non-working partner
- Career choices were often made jointly for the benefit of the family
- Prevention of poverty in old age, especially among women
Important: In addition to the old-age pension, the partner pension also plays a role. If your ex-partner dies, you may lose your right to a survivor’s pension, unless this has been explicitly arranged.
4. Overview table: Pension rights per divorce date
| Date of divorce | Applicable scheme | Distribution of retirement pension | Distribution of partner pension |
|---|---|---|---|
| Before 27 November 1981 | No statutory distribution | No automatic entitlement | No automatic entitlement |
| 27 November 1981 – 30 April 1995 | Boon van Loon judgment | 50% of accrual during marriage | No standard distribution |
| After 30 April 1995 | VPS Act | 50% of accrual during marriage | Depending on accrual date |
| From 2028 | New Pension Act | Simplified automatic distribution | Modernised rules |
5. Step-by-step guide: Dividing pensions in the event of divorce
Step 1: Inventory of pension rights
Gather these documents:
- All pension statements for yourself and your partner
- Prenuptial agreements (if applicable)
- Overview of all pension funds and insurers where you accrued pension
- State pension statements (for information purposes only, not for distribution)
Pension inventory checklist:
- [ ] Log in to My Pension Figures (mijnpensioencijfers.nl)
- [ ] Contact all pension administrators
- [ ] Determine which pension was accrued during the marriage
- [ ] Check whether a special partner pension has been arranged
Step 2: Determine and Record the Division
Standard distribution (equalisation): Your ex-partner is entitled to half of the pension you accrued during the marriage. Conversely, you are also entitled to half of your ex-partner’s pension. The fund keeps track of these entitlements and pays them out when the person retires.
Conversion option: With conversion, your entitlement to your ex-partner’s pension is converted into your own entitlement. Advantages:
- You will receive your own pension entitlement that is not dependent on when your ex-partner retires
- If your ex-partner dies before their pension commences, you will retain your entitlement
- You can decide when your pension starts (within legal limits)
Different agreements: You can also make other agreements, for example:
- Waiving each other’s pension entitlements
- Unequal distribution
- Settlement with other assets
Step 3: Notify and execute
Crucial deadline: You must submit the form to your pension fund within two years of the divorce. If you are late, you will have to arrange the payments between yourselves.
Actions:
- Send the notification form to all pension administrators
- Enclose a copy of your divorce agreement
- Request written confirmation of receipt
- Check after a few months whether the distribution has been processed correctly
Recommended tools:
- My Pension Figures for an overview of all your pension entitlements
- Government forms (rijksoverheid.nl)
- Pension fund websites for specific procedures
6. Common mistakes in pension distribution
Mistake 1: Reporting too late to the pension fund (after the 2-year deadline) Consequence: The fund is no longer obliged to carry out the division. You will then have to ensure that your ex-partner receives the pension to which he/she is entitled.
Mistake 2: Trying to divide state pension State pension is never divided. Everyone who lives in the Netherlands automatically accrues state pension based on their own years of residence. A single person receives a higher state pension than someone with a partner.
Mistake 3: Forgetting to arrange a survivor’s pension for a new partner After divorce, your ex-partner is often no longer entitled to a survivor’s pension. Don’t forget to arrange this for any new partner.
Pro Tip: Avoid these mistakes by taking action in good time. Immediately after your divorce, make a list of all pension funds and set a reminder for the two-year deadline. If in doubt, seek advice from your solicitor or a pension advisor.
7. Practical example: Complete pension distribution process
Case Study: “Kees and Maria divorce after 20 years of marriage”
Initial situation:
- Kees (45 years old): accrued pension €180,000 with ABP
- Maria (43 years old): accrued pension €60,000 with various funds
- Marriage: 20 years
- Accumulated during marriage: Kees £140,000, Maria £45,000
Chosen distribution: Kees and Maria opt for the standard settlement. Maria is entitled to €70,000 (half of Kees’ accrual during the marriage). Kees is entitled to €22,500 (half of Maria’s accrual during the marriage).
Steps they take:
- Inventory of all pension rights via My Pension Figures
- Record agreements in divorce settlement
- Within 6 months, send notification form to ABP and Maria’s pension funds
- Receive confirmation of correct processing
Final result:
| Situation | Kees Pension Law | Maria Pension Law |
|---|---|---|
| Before divorce | €180,000 | €60,000 |
| After pension distribution | €132,500 | €107,500 |
| Estimated monthly payment** | €580 | £470 |
Kees retains €110,000 of his own entitlement + €22,500 of Maria’s entitlement *Uponretirement at age 67, rough estimate
Important lessons:
- Due to pension distribution, Maria has almost as much pension as Kees
- Both partners have certainty about their pension income
- Timely action prevented problems with deadlines
8. Frequently asked questions about pensions in the event of divorce
Question 1: “Do I also have to divide my state pension in the event of divorce?” No, state pensions are personal and are not divided. Everyone who lives in the Netherlands automatically accrues state pension. After divorce, you will receive a higher state pension because you are then registered as single.
Question 2: “What happens if I report too late to the pension fund?” Then you will have to divide the pension with your ex-partner yourself. After two years, the fund is no longer obliged to carry out the division. You retain your legal right, but you will have to arrange this yourself.
Question 3: “Can I waive my ex-partner’s pension?” Yes, this can be recorded in writing in your divorce agreement. Please note: you must explicitly agree on this and notify the pension fund.
Question 4: “Does pension distribution also apply to cohabitation?” Only if you cohabited with a registered cohabitation contract and explicitly recorded this with your pension funds. Simply cohabiting does not entitle you to pension distribution.
Question 5: “What if my ex-partner moves abroad?” Pension distribution still applies. It does not matter where your ex-partner lives – the right to a pension remains. However, there may be practical challenges with regard to payment.
9. Conclusion: Key points for pension distribution
The 5 crucial points to remember:
- Legal right: You are automatically entitled to half of the pension your partner accrued during the marriage
- 2-year deadline: Report pension distribution to all pension funds within 2 years to guarantee automatic implementation
- Consider conversion: Consider conversion for greater independence and security
- State pension remains personal: State pension is never divided and you will receive a higher benefit as a single person
- Arrange survivor’s pension: Do not forget to arrange the partner’s pension for a possible new partner
Your next steps:
- Contact all pension funds within 3 months of your divorce
- Seek advice from a specialist in complex situations
- Download the necessary forms from rijksoverheid.nl
- Check annually via My Pension Figures to ensure that everything is registered correctly
Pension distribution in the event of divorce may seem complex, but with the right information and timely action, you can secure your financial future. Do not hesitate to seek professional advice – after all, it concerns your pension and that of your ex-partner.
