Capacity to Pay Calculation for Maintenance Amsterdam

Capacity to Pay Calculation for Maintenance Amsterdam

The capacity to pay calculation for maintenance in Amsterdam determines the amount a parent or ex-partner can contribute to child maintenance or spousal maintenance. At the Amsterdam District Court, net income after deducting living expenses and housing costs – often high due to Amsterdam rental prices – is carefully assessed for a fair burden-sharing arrangement.

Why Does the Capacity to Pay Calculation Matter in Amsterdam?

In Amsterdam family law, capacity to pay is essential for setting maintenance. It prevents payers from being financially squeezed in an expensive city like Amsterdam. An incorrect calculation can lead to disputes. See our article on calculating maintenance for a basic explanation, or visit the Amsterdam Legal Aid Office for free advice.

Legal Basis for Capacity to Pay in Amsterdam

The calculation is based on Book 1 of the Dutch Civil Code (DCC). Article 1:157 DCC governs spousal maintenance according to capacity to pay; Article 1:404 DCC prioritizes children's needs from both parents' capacities. The Amsterdam District Court follows the Trema guidelines (2023 update) and Expert Group Alimony Standards, including standard amounts for high Amsterdam housing costs. Case law such as ECLI:NL:HR:2018:1905 requires objectivity and consideration of local factors like municipal allowances.

Calculating Capacity to Pay Step by Step

Use tools like the national Maintenance Calculator or Deal!. Steps for Amsterdam residents:

1. Determine gross income: Salary, benefits, plus assets over €10,000 as notional income (art. 1:160 DCC).
2. Mandatory deductions: Taxes, premiums, Amsterdam rent/mortgage (often €1,200+), travel costs, and education.
3. Apply standard deductions: Nibud standards for living expenses, tailored to household size.
4. Establish capacity to pay: The remainder is the maintenance capacity.
5. Check needs: Not exceeding what the recipient requires.

Standard deductions in the Amsterdam context:

Examples of Capacity to Pay in Amsterdam

Example 1: Child Maintenance
Amsterdam father with €4,500 gross income, single, two children. After tax (€900), rent (€1,400), and living expenses (€1,300), €900 remains. Child needs €1,400: he pays €600 (2/3 share).

Example 2: Spousal Maintenance with Extra Costs
Ex-partner with €3,800 income and Amsterdam care costs (€600). Court reduces capacity to pay to €450 maintenance.

Example 3: Assets
€60,000 savings above exemption: €2,400 notional income (4%), increasing capacity to pay.

Rights and Obligations at the Amsterdam District Court

• Disclosure duty: Share income and expenses (art. 1:408 DCC).
• Full transparency: Concealment leads to back payments or penalties.
• Review: Apply to the Amsterdam District Court for job loss/promotion (art. 1:401 DCC).
• Reasonable expenses: Luxury in Amsterdam (e.g., expensive lease car) does not count.

Tips for Amsterdam Residents

• Start with the Maintenance Calculator.
• Gather payslips, rental agreements, Amsterdam municipal allowances.
• Opt for mediation through local agencies to avoid court proceedings.
• Complex case? Visit the Amsterdam Legal Aid Office or a family law attorney.
• Review annually: Trema guidelines 2024 and inflation.

Also read: Calculating Maintenance, Child Maintenance, Spousal Maintenance.

Frequently Asked Questions