One in three marriages in Switzerland ends in divorce – often with a considerable financial impact and far-reaching changes. So it is all the more important to think about pensions in such a situation.

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    Approximately two out of five marriages end in divorce 

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    The average length of a marriage that ends in divorce is 15 years

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    Uri has by far the lowest divorce rate, while Basel-Stadt narrowly leads the list with the highest

A divorce is not only emotionally draining. It can also have major financial consequences as well as with respect to your retirement provision: for example, you may have to sell the home you shared with your spouse, or the contributions you paid into your pension fund may have to be shared.

What you need to know about your divorce

The court costs depend on whether or not the parties reach an amicable agreement. Fees for a mutually agreed divorce are between CHF 1000 and CHF 3000. It becomes much more expensive if the parties are unable to reach an amicable agreement: in the case of a divorce fought in court, the costs can quickly add up because of mounting attorney and court fees.

First pillar: the income liable for AHV contributions during your marriage will be added together and divided equally between both AHV accounts. Immediately after your divorce, you should submit an income splitting application to the compensation fund. This ensures timely calculation of your pension. 

Second pillar: when calculating the amount to be split, the difference between the assets at the time of marriage (including accrued interest) and at the time of divorce is taken into account. Each of the parties is entitled to half of the difference calculated for the other party. To establish the compensation entitlement, the court needs confirmation from your pension fund that the amount can be divided.

 

Third pillar: the division arrangement for private pension provision depends on the marital property regime selected: with the community of acquisitions, which is the normal situation, the third pillar assets accrued during the marriage are divided equally. This also applies for a community of property regime. There is no division of assets in the case of a separation of property regime.

For both parties, it is important to review their pension situation following the divorce and to close any gaps that have occurred.

A divorce often raises the question of what to do with the couple’s property as well. Will they sell the home they shared, or will one of the partners take it over? In the case of a home that was purchased together, the partner moving out must be compensated. The payment depends on the present market value of the property. We would be pleased to answer your questions about real estate and mortgages.

Points to consider:

  • Joint and several liability: if the parties have a joint mortgage, they share liability, even if one party has moved out. Thus, each of the divorced parties is liable for the other party’s debts if he/she is unable to pay. In this case, the mortgage agreement remains in place despite the divorce.
  • Early repayment penalty: it is possible to get out of a mortgage. However, this often involves high early repayment penalties. This is the financial compensation the bank receives for losses caused by the early termination.
  • Draw up an agreement to govern a possible divorce: when buying property, you can and should draw up an agreement on what will happen to the mortgage if you get divorced. This can also play a role when choosing the mortgage: maybe you could opt for a shorter term or a Libor mortgage.
  • Disability/death cover
  • Retirement provision
  • Tax optimisation (pension provisions)
  • Property insurance
  • Healthcare insurance
  • Own home/mortgages
  • Wealth formation/accumulation

Make an appointment for a consultation

We can offer you advice to meet your personal needs: from a free initial consultation to a detailed analysis to tailored planning.

Freizeit

Pension and financial analysis

With the pension and financial analysis, in the initial consultation we discuss your personal financial situation as a result of your divorce. For the analysis, we need information from you about your overall situation. In line with your needs and wishes, we analyse your financial situation and provide you with various potential solutions so you can be financially secure even after a divorce. We also support you in implementing your chosen solution.

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Make an appointment for a consultation

We can offer you advice to meet your personal needs: from a free initial consultation to a detailed analysis to tailored planning.