Pension equalisation – what happens to the pension in the event of divorce

Pension equalisation only becomes an issue when you get divorced, because both partners want to be secure for their old age after the divorce. However, how is this pension equalisation distributed, who benefits from it and how fair is it really?

The facts – who benefits from pension equalisation?

People who work acquire pension entitlements for old age in different ways. While employees are usually compulsorily insured with the German pension insurance, civil servants are entitled to a civil servant pension and self-employed people ideally provide for their old age on their own responsibility.

In the event of divorce, the equalisation of p ensions ensures that the spouse benefiting from it is able to provide for his or her own retirement independently of the other partner. Originally, the legislator had the housewife marriage in mind with this claim, in which the wife looks after the joint children and therefore foregoes her own income and savings for old age. In the case of pension rights equalisation, the pension rights acquired during the marriage are therefore divided equally between the partners. However, this entitlement does not apply to non-married and non-marital partners, as in these relationships each person remains responsible for his or her own pension.

• Everyone who works acquires pension rights for old age
• In the event of a divorce, the provision for old age must be regulated for both partners, which is regulated by the pension equalisation scheme.

Which pension entitlements are included? – Pension & Co.

The figures make it clear how important pension equalisation is, because in 2011 more than 716,000 retired people benefited from pension equalisation and supplemented their pensions with an average of 210 euros per month by transferring the pension entitlements of their ex-partner. But which pension entitlements are included in the pension rights adjustment at all? The law stipulates that all pension benefits acquired by a spouse through employment during the marriage are included in the pension equalization. However, benefits that are of a compensatory nature, such as pensions from accident insurance or life insurance, are not eligible for equalisation.

• The pension belongs to the entitlements that are regulated within the framework of the pension rights adjustment.
• Not eligible for compensation are benefits that have a compensatory character

Avoiding pension rights adjustment – is this possible?

Pension equalisation is not always fair and is therefore not applied in certain cases. If the marriage lasts less than three years, if the equalisation value is less than 50 euros per month or if the pension difference is only about 25 euros per month or less, pension equalisation is not considered necessary.

However, if none of the above points apply, pension equalisation can also be prevented in another way. Anyone who has excluded pension equalisation in a notarised marriage contract avoids pension equalisation proceedings in the event of divorce. However, such an agreement can still be concluded during the divorce as long as the spouses are both financially secure for old age and agree to the agreement. However, a pension equalisation can also be avoided by combining it with the equalisation of gains pending on divorce. Here, for example, a property can be transferred for old-age provision, provided that the family court considers this agreement to be appropriate.

• Pension rights adjustment is not necessary in certain cases
• The pension equalisation can also be excluded by a notarised agreement.

Conclusion on pension equalisation – this is how important the regulation is for married couples

At first glance, the pension equalization is fair for both parties, but in practice it shows only problems with which the spouses have to struggle. It becomes particularly problematic for married couples who only divorce at an advanced age. Where both partners together were well provided for in old age, they often find themselves with only two poor households after the divorce. If a divorce is finalized at a young age, both parties still have the opportunity to supplement their pensions as they continue to work, while older couples often face financial ruin. So instead of a schematic division, it can often be more beneficial for older couples if one party keeps the pension rights and exchanges them for other assets, such as a property. So the legislation here is not entirely optimal, as it does not offer everyone the same opportunities and can be particularly difficult for older couples by necessity.

• The pension equalization actually regulates the provision in old age fairly, but does not take into account the disadvantage that some groups draw from it
• Older spouses in particular are not favoured by pension equalisation

The most important questions about pensions after divorce

When it comes to divorce and pensions, many questions arise. The equalization of pensions and the fair provision in old age for both parties is an important topic. To ensure that no questions remain unanswered for you, the experts at Lukinski answer all important questions on the subject of divorce and pensions.

What is the pension equalization in divorce?

The pension equalisation deals with all entitlements to a pension in old age acquired during the marriage. It is therefore about the pension and how it is divided between the spouses.

How fast is a divorce?

The length of a divorce depends first of all on whether the divorce is contested or amicable. Amicable divorces usually take between three and six months, while contested divorces can be delayed for up to a year.

What are the costs of divorce?

The cost of a divorce varies from case to case. The court determines much of the cost, which also depends on how many lawyers are needed and how long the divorce takes.

Who pays for the divorce?

Normally, the costs are offset against each other. This means that each party pays its own lawyer and half of the court costs incurred.

What is gain in marriage?

A gain describes an increase in assets that occurred during the marriage. At the end of the marriage, this must be calculated for the mutual equalisation of gains.

How long does it take to process the pension rights adjustment?

A divorce in which the pension equalization is omitted usually takes no longer than four months. Divorces where the pension equalisation is observed take between five and nine months.

Can the divorce be denied?

Divorce can be refused by the spouse in principle. However, this is not possible on a permanent basis, as a compulsory divorce can be decided by the court after three years at the latest.

Divorce: guide, help and tips

Divorce is complex, it’s true. But you are not alone! Many let themselves separate and in fact, a large part always finds a good solution. Only a small part ends in a quarrel. So that you can prepare well, you will find here our small guides and tips on divorce, family, money and real estate.

• Divorce: Guide

The separation year – necessity, benefits & reconciliations

The separation year is intended to give spouses one last chance for reconciliation and enough time to think about this life-changing decision. The law provides many guidelines here that couples must adhere to. Lukinski’s experts reveal exactly how the separation year works and how couples can make the divorce process the easiest. Common issues in divorce are mainly:

• How soon can you file for divorce?
• How soon can you get divorced again?
• How much does the divorce cost?
• What all do you need for the divorce?

You can find all the answers a little further down the article!

• Tip! Newly separated? Our guide with tips on sellinga house and apartment in the event of divorce

The basis – Why a year of separation at all?

Marriage and the family are regarded as one of the most important social institutions in the legal system. The separation year is therefore intended to act as a preventive measure against possibly wrong, purely emotional and only temporary decisions that could be regretted afterwards. Even though the separation year is seen by many married couples as harassment or a pure burden, the intention behind the regulation is clear, to review and possibly revise the decision in the given time. In addition, the time is useful to take care of some matters that are important for the divorce process going forward. Although there is a requirement to prove that the separation year has been completed, it is not possible to apply to the court for the start of the year or have it notarised. It therefore makes sense to record the beginning in writing.

A shortening or even a complete omission of the separation year can only be brought about by a hardship decision of the court according to § 1565 paragraph 2. An example of such a decision can be extreme domestic violence, which the court classifies as undue hardship.

• The separation year should be considered as a reflection period for the couple
• The shortening of the year of separation is only permitted in special cases.

Attempts at reconciliation – the guidelines in the law

Attempts at reconciliation during the separation year are certainly permitted. However, these are subject to certain guidelines. Attempts at reconciliation that do not last longer than three months do not lead to an interruption of the separation year. The time during which the separation was interrupted therefore counts towards the 12 months of the separation year. For any attempts beyond three months, the family court will assume that the couple have reconnected. The couple also has the option of withdrawing the divorce petition themselves within this year. If the divorce is still to be carried out after this period, a new petition for divorce must be filed and the separation year starts all over again.

• Attempts at reconciliation are permitted, but are subject to certain guidelines
• Reconciliations of less than three months do not interrupt the separation year

The benefit – this is what you should arrange in the year

The separation year should not only be used to review the right decision, but can also be used to arrange important things for the divorce. These things include, for example, insurance. In particular, health insurance should be rewritten and amended, since spouses are usually insured together in a family insurance. However, joint rental agreements for real estate must also be amended and rewritten at an early stage. In addition, the joint bank accounts, if any, should be separated and joint financial obligations, such as credits and loans, should be resolved.
Probably the most important, however, is the divorce settlement agreement. This can be determined by the spouses during the separation period in order to avoid costly negotiations before the family court. In this agreement, practical matters such as contact with the children, their maintenance and custody, as well as their own maintenance, the handling of property matters and the equitable division of household goods are regulated. If the spouses are in agreement, this document will help with a quick and inexpensive divorce. The document must be notarized by a notary and always be set down in writing.

• The separation year can be used to clarify important things for the divorce
• A divorce settlement agreement can be drawn up by the couple

Divorce – separation year, application & costs

Divorce – amicable or in dispute

Divorce can happen in two different ways. There are contested divorces and amicable divorces. The court decides how a divorce is to proceed. If the couple has already drawn up a divorce settlement agreement in the year of separation and clarified all relevant points in private, it is an amicable divorce, as the two parties are in agreement. In such a case, only one lawyer is needed and the costs for the court are much lower. Such a divorce is probably also the most pleasant for the spouses, as they do not part in a dispute. However, a contested divorce proceeds differently. If the spouses could not agree in advance on the issues to be discussed, they will be resolved in family court. In this case, both parties need a lawyer, which is a major cost factor. Points of dispute, such as custody of the joint children or the handling of property matters are discussed with the parties by the judge and then determined. A divorce in dispute is probably never a simple matter and can often drag on for years.

• Amicable divorces are inexpensive and easy for the spouses
• Contentious divorces can often be difficult and costly to resolve

The most important questions about divorce with separation year

Especially in the case of contentious divorces, the legal situation is not always clear and there are many unanswered questions for the spouses. So that you know exactly about the regulations around the separation year, the experts of Lukinski answer the most important questions.

Can you file for divorce before the separation year?

In principle, the divorce can only be filed after the separation year, because according to German law, the spouses must live at least one year apart before the divorce may be filed. Only in special exceptional cases, the divorce can be filed before.

How long does it take from divorce petition to divorce?

The length of the divorce usually depends on whether it is amicable or contested. Amicable divorces can take between one and six months, while contested divorces can take more than a year.

Can the divorce be denied?

Divorce can be refused by the spouse in principle. However, this is not possible on a permanent basis, as a compulsory divorce can be decided by the court after three years at the latest.

How to shorten the separation year?

The separation year cannot generally be shortened. Shortening or omitting the separation year is generally only possible if there is evidence of hardship.

How much does a simple divorce cost?

The costs of a divorce are determined by the court and are based on the value of the proceedings. To calculate this value, the income and assets of the spouses are included.

Who pays the costs in a divorce?

The court determines the costs of the proceedings, including the lawyer’s fees. These are divided so that each party pays its own legal fees and half of the court costs.

What all do you need for the divorce?

The following documents are always required for a divorce: Marriage certificate or family record book in the original or certified copy, the birth certificates of the minor children and possible marriage contracts and/or divorce settlement agreements.

Real estate agent & consultant: divorce and talks

Many of our clients discuss the sale of their property with us in advance of the divorce. Why? The sale of a house or a condominium takes a lot of time. All formalities should be known in advance, so that afterwards, after the separation, no unpleasant surprises arise. As a real estate agent in Frankfurt, Berlin or Cologne, you are often confronted not only with questions about the process of selling a house, but also with general questions that arise in the run-up to a divorce.

Divorces happen for a variety of reasons and at all stages of a relationship. No matter if it is the first month after a hasty wedding, the famous darn seventh year or the divorce after decades, in the second half of life.

Top 5 reasons for divorce

1. Married too fast – pressure
2. Lack of communication
3. A new partner
4. Mistake of the other
5. Disinterest in one’s partner

Married too fast – pressure

As just mentioned, the couple did not marry 100% for love, but because it was rushed or because their own environment around family and friends built up pressure. Some also got married because they built up pressure on themselves, just before 30 or even much earlier, for example with the first boyfriend or girlfriend. When one’s own will was not fully there, many couples separate.

Lack of communication

Lack of communication in married couples is a very common reason, especially in relationships that have existed for a long time. When “man” is again only with the friends on the road and no longer find time for tenderness or when the “woman” prefers to be at home, cuddling and watching series on Netflix. Theoretically, this is all no problem, as long as the spouses still talk and communicate with each other beyond the kitchen table.

A new partner

The “new partner” who will make everything better. Those who have settled down want to experience something “new”. Many look for hobbies or go on vacation. But some are on the lookout for a new partner who will make everything better. Here, the communication may be there, but the inner desire becomes too great. Not only with private persons, also with big stars one experiences these outbreaks from relationships.

Mistake of the other

Who always only looks for faults in the other, will not be happy. Who is pessimistic and only looks for the hair in the soup, will not become happy. Nobody is perfect, nobody. Accordingly, small flaws and mistakes belong to us. Much more: they make us who we are. They make us unique and special. But not everyone sees it that way. If you assume that everything that can go wrong will go wrong, you risk losing your partner.

Destinterese at the Parnter

This results in another common reason, disinterest in the partner. Who no longer shows interest in the spouse, which has either already given up or he or she takes the partner for granted. It is so important to constantly show the other again, that he or she is something special for you.

You see, whether escape from the marriage at the smallest problems or the lack of interest and the laziness to woo the other after marriage, the reasons for divorce are many. Who is in such a life situation, which needs allies on the side to reorganize and restructure their own life.

Even in such situations we are at your side with advice and action.

Statistics: Separation and divorce

You can find more statistics here: Real Estate Statistics.

Number of divorces in Germany

Number of divorces in Germany from 1990 to 2017

You can find more statistics at Statista

Number of divorced marriages by duration of marriage

Number of divorced marriages by duration of marriage in 2018

Average number of marriages to one divorce

Average number of marriages to one divorce in Germany from 1951 to 2017

You can find more statistics at Statista

Average age of divorcees at the time of divorce

Average age of divorcees at the time of divorce in Germany from 2000 to 2018

You can find more statistics at Statista

You can find more statistics here: Real Estate Statistics.

Divorce: guide, help and tips

Divorce is complex, it’s true. But you are not alone! Many let themselves separate and in fact, a large part always finds a good solution. Only a small part ends in a quarrel. So that you can prepare well, you will find here our small guides and tips on divorce, family, money and real estate.

• Divorce: Guide