Pension fund assets are often one of the biggest financial items that must be dealt with during divorce proceedings.
A fundamental principle of the Swiss Pension Fund Act (BVG) is that the pension fund assets of both parties accrued during the marriage must be divided equally.
Example:
Party 1 | Party 2 | |
---|---|---|
Pension fund assets at marriage | CHF 100‘000 | CHF 20‘000 |
Pension fund assets at divorce | CHF 300‘000 | CHF 60‘000 |
Pension fund assets to be split | CHF 200‘000 | CHF 40‘000 |
Settlement payable to other party | CHF 100‘000 | CHF 20‘000 |
Net settlement payable | CHF 80‘000 | |
Pension fund assets after separation due to divorce | CHF 300‘000 – CHF 80‘000 = CHF 220‘000 |
CHF 60‘000 + CHF 80‘000 = CHF 140‘000 |
In the case of divorce, the reference date for establishing the size of the pension fund assets is the date on which divorce proceedings were instituted.
Whether the pension fund assets are to be split equally between the parties is a matter for the divorce court to decide.
- Important 1: Pension fund assets will not be split if the parties have separate matrimonial estates
- Important 2: Voluntary buy-ins to the pension fund are also split
- Important 3: Retirement and disability pensions that are already being paid are also split in the event of divorce
Please contact the administration office should you have any questions on divorce and pension funds.