Pension Conversion upon Divorce in Amsterdam

Pension Conversion upon Divorce in Amsterdam

Upon divorce in Amsterdam, pension conversion provides a way to convert a portion of one partner's pension into an independent pension entitlement for the ex-partner. This ensures the ex does not receive a payout dependent on the other's lifespan but instead builds their own pension pot. This is a popular option in divorce settlements at the Amsterdam District Court.

What Does Pension Conversion Mean for Residents of Amsterdam?

Conversion means that the pension fund or insurer converts a portion of the participant's old-age pension (often the partner with more pension) into an independent entitlement for the other partner. After conversion, the ex-partner's pension stands alone, separate from the former partner. This applies to pensions accrued during the marriage or partnership, which is relevant for many divorces in Amsterdam.

Partners must explicitly choose conversion; it is not automatic. Otherwise, the statutory equalization applies, where the payout only begins upon the ex-partner's retirement and depends on their lifespan.

Legal Basis for Conversion

Conversion is regulated in the Pension Equalization Act upon Divorce (Wet VPB), specifically Article 1, paragraph 1 and Article 62 et seq. of the Pension Act. Since 2000 (divorces after January 1, 2001), this can be arranged via a settlement at the Amsterdam District Court.

• Article 1 Wet VPB: Describes conversion as the transformation of pension entitlements.
• Article 80 Wet VPB: Allows choosing conversion over equalization.
• Pension Act Article 62: Requires pension providers to execute conversion upon joint request.

For older divorces (before 2001), transitional rules from the Economic Position of Marriage Partners Act (WEVH) apply, with limited conversion options.

Differences Between Conversion and Equalization

Here is an overview of the key differences:

Conditions for Conversion in Amsterdam

Conversion is possible if:

1. Both partners give written consent in the settlement at the Amsterdam District Court.
2. The pension falls under the Wet VPB (accrued during marriage).
3. The pension provider supports it (nearly all do).
4. There is a deed of division, prepared by a notary or lawyer.

The lawyer sends the deed to the fund, which must act within 6 months.

Rights and Obligations in Conversion

Rights

• Own pension, independent of ex.
• No partner check upon payout.
• Protected against changes to ex's pension (e.g., early termination).

Obligations

• Both must cooperate; otherwise equalization applies.
• Share conversion costs (usually 50/50).
• Inform pension fund about new partners if required.

Practical Cases from Amsterdam

Example 1: Anna from the Jordaan and Bert divorce after 20 years. Bert's pension: €500/month, Anna's €200. After conversion: Bert €350, Anna own €150. Anna receives payout directly upon retirement, independent of Bert.

Example 2: Coen and Dana from Amsterdam-South with different funds. Conversion gives Dana her own policy, safe from Coen's remarriage risks.

In Amsterdam divorces, conversion is common with unequal life expectancies or remarriage, less so with equal pensions due to costs.

Tips for Residents of Amsterdam

• Pension Calculation: Use tools or advisors; compare net via Juridisch Loket Amsterdam.
• Partner Pension Check: Conversion splits this; assess separately.
• Record in Settlement: Specify percentage and term at the Amsterdam District Court.
• Legal Advice: Start at Juridisch Loket Amsterdam for free intake or family law attorney. Contact for advice.
• More Info: Read about Pension Equalization Amsterdam, Survivor's Pension and Matrimonial Property Pension.

Frequently Asked Questions